Accounting Basis: City: Phone Number: Fax Number: PEARL CITY. 815/ IL License Number (9 digit): Expiration Date:

Transcription

1 Due to ROE on Monday, October 15th Due to ISBE on Thursday, November 15th SD/JA18 X School District Joint Agreement ILLINOIS STATE BOARD OF EDUCATION School Business Services Division 1 North First Street, Springfield, Illinois / Illinois School District/Joint Agreement Annual Financial Report * June 3, 218 School District/Joint Agreement Number: ACCRUAL Name of Auditing Firm: BENNING GROUP, LLC County Name: STEPHENSON X CASH Name of Audit Manager: JENNY L. BLOCKER Name of School District/Joint Agreement: Address: PEARL CITY COMMUNITY UNIT SCHOOL DISTRICT NO. 2 5 W. DOUGLAS STREET, SUITE 81 Address: Filing Status: City: State: Zip Code: 1 S. SUMMIT Submit electronic AFR directly to ISBE FREEPORT IL 6132 City: Phone Number: Fax Number: PEARL CITY Click on the Link to Submit: 815/ / Address: Send ISBE a File IL License Number (9 digit): Expiration Date: /3/218 Zip Code: 6162 School District/Joint Agreement Information (See instructions on inside of this page.) Annual Financial Report Type of Auditor's Report Issued: Qualified Unqualified YES X NO Are Federal expenditures greater than $75,? X Adverse YES X NO Is all Single Audit Information completed and attached? Disclaimer YES X NO Were any financial statement or federal award findings issued? Address: ISBE Use Only Reviewed by District Superintendent/Administrator Reviewed by Township Treasurer (Cook County only) Reviewed by Regional Superintendent/Cook ISC Name of Township: Accounting Basis: jblocker@benninggroup.com District Superintendent/Administrator Name (Type or Print): TIMOTHY THILL Township Treasurer Name (type or print) RegionalSuperintendent/Cook ISC Name (Type or Print): AARON MERCIER Address: Address: Address: tthill@pcwolves.net amercier@roe8.com Telephone: Fax Number: Telephone: Fax Number: Telephone: Fax Number: 815/ / / / Signature & Date: Signature & Date: Signature & Date: Single Audit Status: Certified Public Accountant Information * This form is based on 23 Illinois Administrative Code 1, Subtitle A, Chapter I, Subchapter C (Part 1). This form is based on 23 Illinois Administrative Code, Subtitle A, Chapter I, Subchapter C, Part 1. ISBE Form SD5-35/JA5-6 (5/18) In some instances, use of open account codes (cells) may not be authorized by statute or administrative rule. Each school district or joint agreement is responsible for obtaining the concurring legal opinion and/or other supporting authorization/documentation, as necessary, to use the applicable account code (cell). Printed: 11/8/218 Pearl City AFR 18.xlsm

2 TABLE OF CONTENTS TAB Name AFR Page No. Auditor's Questionnaire Aud Quest 2 Comments Applicable to the Auditor's Questionnaire.... Aud Quest 2 Financial Profile Information.... FP Info 3 Estimated Financial Profile Summary... Financial Profile 4 Basic Financial Statements Statement of Assets and Liabilities Arising from Cash Transactions/Statement of Position... Assets-Liab 5-6 Statement of Revenues Received/Revenues, Expenditures Disbursed/Expenditures, Other Sources (Uses) and Changes in Fund Balances (All Funds) Acct Summary 7-8 Statements of Revenues Received/Revenues (All Funds)... Revenues 9-14 Statements of Expenditures Disbursed/Expenditures Budget to Actual (All Funds)... Expenditures Supplementary Schedules Schedule of Ad Valorem Tax Receipts Tax Sched 23 Schedule of Short-Term Debt/Long-Term Debt... Short-Term Long-Term Debt 24 Schedule of Restricted Local Tax Levies and Selected Revenue Sources/ Schedule of Tort Immunity Expenditures Rest Tax Levies-Tort Im 25 Statistical Section Schedule of Capital Outlay and Depreciation... Cap Outlay Deprec 26 Estimated Operating Expenditures Per Pupil and Per Capita Tuition Charge Computation. PCTC-OEPP Indirect Cost Rate - Contracts paid in Current Year. Contarcts Paid in CY 29 Indirect Cost Rate - Computation ICR Computation 3 Report on Shared Services or Outsourcing... Shared Outsourced Serv. 31 Administrative Cost Worksheet.... AC 32 Itemization Schedule... ITEMIZATION 33 Reference Page... REF 34 Notes, Opinion Letters, etc.. Opinion-Notes 35 Deficit Reduction Calculation Deficit AFR Sum Calc 36 Audit Checklist/Balancing Schedule... AUDITCHECK - Single Audit Section Annual Federal Compliance Report... Single Audit Cover - CAP INSTRUCTIONS/REQUIREMENTS: For School Districts/Joint Agreements All School Districts/Joint Agreements must complete this form (Note: joint agreement supplementary/statistical schedules may not be applicable) This form complies with Part 1 (Requirements for Accounting, Budgeting, Financial Reporting, and Auditing). 23, Illinois Administrative Code 1, Subtitle A, Chapter I, Subchapter C (Part 1) 1. Round all amounts to the nearest dollar. Do not enter cents. (Exception: 9 Month ADA on page 27, line 78) 2. Any errors left unresolved by the Audit Checklist/Balancing Schedule must be explained in the itemization page. 3. Before submitting AFR - be sure to break all links in AFR before submitting to ISBE. If links are not broken, amounts entered have changed when opening the AFR. 4. Submit AFR Electronically The Annual Financial Reports (AFR) must be submitted directly through the Attachment Manager to the AFR Group by the Auditor (not from the school district) on before November 15 with the exception of Extension Approvals (Please see AFR Instructions for complete submission procedures). Note: CD/Disk no longer accepted. Attachment Manager Link AFR supporting documentation must be embedded as Microsoft Word (.doc), Word Perfect (*.wpd) or Adobe (*.pdf) and inserted within tab "Opinions & Notes". These documents include: The Audit, Management letter, Opinion letters, Compliance letters, Financial notes etc. For embedding instructions see "Opinions & Notes" tab of this form. Note: In Windows 7 and above, files can be saved in Adobe Acrobat (*.pdf) and embedded even if you do not have the software. If you have problems embedding the files you may attach them as separate (.docx) in the Attachment Manager and ISBE will embedded them for you. 5. Submit Paper Copy of AFR with Signatures a) The auditor must send three paper copies of the AFR form (cover through page 8 at minimum) to the School District with the auditor signature. Note: School Districts and Regional Superintendents may prefer a complete paper copy in lieu of an electronic file. Please comply with their requests as neccessary. b) Upon receipt, the School District retains one copy for their records, signs, and forwards the remaining two copies to the Regional Superintendent's office no later than October 15, annually. c) Upon receipt, the Regional Superintendent's office retains one copy for their records, signs, and forwards the remaining paper copy to ISBE no later than November 15, annually. If the 15th falls on a Saturday, the due date is the Friday before. If the 15th falls on a Sunday, the due date is the Monday after. Yellow Book, CPE, and Peer Review requirements must be met if the Auditor issues an opinion stating "Governmental Auditing Standards" were utilized. Federal Single Audit 2 CFR Requesting an Extension of Time must be submitted in writing via or letter to the Regional Office of Education (at the descretion of the ROE). Approval may be provided up to and no later than December 15 annually. After December 15, audits are considered late and out of compliance per Illinois School Code. 7. Qualifications of Auditing Firm School District/Joint Agreement entities must verify the qualifications of the auditing firm by requesting the most current peer review report and the corresponding acceptance letter from the approved peer review program, for the current peer review period. A school district/joint agreement who engages with an auditing firm who is not licensed and qualified will be required to complete a new audit by a qualified auditing firm at the school district's/joint agreement's expense.

3 Page 2 Page 2 AUDITOR'S QUESTIONNAIRE INSTRUCTIONS: If your review and testing of State, Local, and Federal Programs revealed any of the following statements to be true, then check the box on the left and attach the appropriate findings/comments. PART A - FINDINGS 1. One or more school board members, administrators, certified school business officials, or other qualifying district employees failed to file economic interested statements pursuant to the Illinois Government Ethics Act. [5 ILCS 42/4A-11] 2. One or more custodians of funds failed to comply with the bonding requirements pursuant to Illinois School Code [15 ILCS 5/8-2;1-2.19;19-6]. 3. One or more contracts were executed or purchases made contrary to the provisions of the Illinois School Code [15 ILCS 5/1-2.21]. 4. One or more violations of the Public Funds Deposit Act or the Public Funds Investment Act were noted [3 ILCS 225/1 et. seq. and 3 ILCS 235/1 et. seq.]. 5. Restricted funds were commingled in the accounting records or used for other than the purpose for which they were restricted. 6. One or more short-term loans or short-term debt instruments were executed in non-conformity with the applicable authorizing statute or without statutory Authority. 7. One or more long-term loans or long-term debt instruments were executed in non-conformity with the applicable authorizing statute or without statutory Authority. 8. Corporate Personal Property Replacement Tax monies were deposited and/or used without first satisfying the lien imposed pursuant to the Illinois State Revenue Sharing Act [3 ILCS 115/12]. 9. One or more interfund loans were made in non-conformity with the applicable authorizing statute or without statutory authorization per Illinois School Code [15 ILCS 5/ , 2-4 and 2-5]. 1. One or more interfund loans were outstanding beyond the term provided by statute Illinois School Code [15 ILCS 5/ , 2-4, 2-5]. 11. One or more permanent transfers were made in non-conformity with the applicable authorizing statute/regulation or without statutory/regulatory authorization per Illinois School Code [15 ILCS 5/17-2A]. 12. Substantial, or systematic misclassification of budgetary items such as, but not limited to, revenues, receipts, expenditures, disbursements or expenses were observed. 13. The Chart of Accounts used to define and control budget and accounting records does not conform to the minimum requirements imposed by ISBE rules pursuant to Illinois School Code [15 ILCS 5/2-3.27; ]. 14. At least one of the following forms was filed with ISBE late: The FY17 AFR (ISBE FORM 5-35), FY17 Annual Statement of Affairs (ISBE Form 5-37) and FY18 Budget (ISBE FORM 5-36). Explain in the comments box below in persuant to Illinois School Code [15 ILCS 5/3-15.1; 5/1-17; 5/17-1]. PART B - FINANCIAL DIFFICULTIES/CERTIFICATION Criteria pursuant to the Illinois School Code [15 ILCS 5/1A-8]. 15. The district has issued tax anticipation warrants or tax anticipation notes in anticipation of a second year's taxes when warrants or notes in anticipation of current year taxes are still outstanding, as authorized by Illinois School Code [15 ILCS 5/17-16 or through 34-27]. 16. The district has issued short-term debt against two future revenue sources, such as, but not limited to, tax anticipation warrants and General State Aid certificates or tax anticipation warrants and revenue anticipation notes. 17. The district has issued school or teacher orders for wages as permitted in Illinois School Code [15 ILCS 5/8-16, and 34-76] or issued funding bonds for this purpose pursuant to Illinois School Code [15 ILCS 5/8-6; ; 34-76; and 19-8]. 18. The district has for two consecutive years shown an excess of expenditures/other uses over revenues/other sources and beginning fund balances on its annual financial report for the aggregate totals of the Educational, Operations & Maintenance, Transportation, and Working Cash Funds. PART C - OTHER ISSUES 19. Student Activity Funds, Imprest Funds, or other funds maintained by the district were excluded from the audit. 2. Findings, other than those listed in Part A (above), were reported (e.g. student activity findings). These findings may be described extensively in the financial notes. 21. Federal Stimulus Funds were not maintained and expended in accordance with the American Recovery and Reinvestment Act (ARRA) of 29. If checked, an explanation must be provided. X 22. Check this box if the district is subject to the Property Tax Extension Limitation Law. Effective Date: 4/1/1997 (Ex: //) 23. If the type of Auditor Report designated on the cover page is other than an unqualified opinion and is due to reason(s) other than solely Cash Basis Accounting, please check and explain the reason(s) in the box below. Printed: 11/8/218 Pearl City AFR 18.xlsm

4 PART D - EXPLANATION OF ACCOUNTING PRACTICES FOR LATE MANDATED CATEGORICAL PAYMENTS (For School Districts who report on an Accrual/Modified Accrual Accounting Basis only) School districts that report on the accrual/modified accrual basis of accounting must identify where late mandated categorical payments (Acct Codes 31, 315, 311, 35, 351, 312, 395) are recorded. Depending on the accounting procedure these amounts will be used to adjust the Direct Receipts/Revenues in calculation 1 and 2 of the Financial Profile Score. In FY218, identify those late payments recorded as Intergovermental Receivables, Other Recievables, or Deferred Revenue & Other Current Liabilities or Direct Receipts/Revenue. Payments should only be listed once. 24. Enter the date that the district used to accrue mandated categorical payments Date: 25. For the listed mandated categorical (Revenue Code (311, 35, 351, 31, 315) that were vouchered prior to June 3th, but not released until after year end as reported in ISBE FRIS system, enter the amounts that were accrued in the chart below. Account Name Total Deferred Revenues (49) Mandated Categoricals Payments (31, 315, 311, 312, 35, 351, 395) 1 1 Direct Receipts/Revenue Mandated Categoricals Payments (31, 315, 311, 312, 35, 351, 395) Total 1 Revenue Code (311-Sp Ed Personnel, 351-Sp Ed Transportation, 35-Regular/Vocational Transportation, 315-Sp Ed Funding for Children Requiring Services, 31-Sp Ed Private Facilities, 312-Sp Ed Regular Orphanage Individual, 395-Regual Orphans & Foster Children) PART E - QUALIFICATIONS OF AUDITING FIRM School District/Joint Agreement entities must verify the qualifications of the auditing firm by requesting the most current peer review report and the corresponding acceptance letter from the approved peer review program for the current peer review. A school district/joint agreement who engages with an auditing firm who is not licensed and qualified will be required to complete a new audit by a qualified auditing firm at the school district's/joint agreement's expense. Comments Applicable to the Auditor's Questionnaire: BENNING GROUP, LLC Name of Audit Firm (print) The undersigned affirms that this audit was conducted by a qualified auditing firm and in accordance with the applicable standards [23 Illinois Administrative Code Part 1] and the scope of the audit conformed to the requirements of subsection (a) or (b) of 23 Illinois Administrative Code Part 1 Section 11, as applicable. Signature mm/dd/yyyy Note: A PDF with signature is acceptable for this page. Enter the location on signature line e.g. PDF in Opinion Page with signature

5 Page 3 Page A B C D E F G H I J K L M Required to be completed for School Districts only. A. Tax Rates (Enter the tax rate - ex:.15 for $1.5) Tax Year 217 Equalized Assessed Valuation (EAV): 53,349,524 Educational Operations & Maintenance Transportation Combined Total Working Cash Rate(s): = B. Results of Operations * Receipts/Revenues Disbursements/ Expenditures Excess/ (Deficiency) Fund Balance 4,831,799 4,98,433 (148,634) 1,217,538 * The numbers shown are the sum of entries on Pages 7 & 8, lines 8, 17, 2, and 81 for the Educational, Operations & Maintenance, Transportation and Working Cash Funds. C. Short-Term Debt ** CPPRT Notes TAWs TANs TO/EMP. Orders GSA Certificates Other Total = ** The numbers shown are the sum of entries on page 25. D. Long-Term Debt Check the applicable box for long-term debt allowance by type of district. X a. 6.9% for elementary and high school districts, 7,362,234 b. 13.8% for unit districts. Long-Term Debt Outstanding: c. Long-Term Debt (Principal only) Acct Outstanding: ,665 E. Material Impact on Financial Position If applicable, check any of the following items that may have a material impact on the entity's financial position during future reporting periods. Attach sheets as needed explaining each item checked. Comments: Pending Litigation Material Decrease in EAV Material Increase/Decrease in Enrollment Adverse Arbitration Ruling Passage of Referendum Taxes Filed Under Protest Decisions By Local Board of Review or Illinois Property Tax Appeal Board (PTAB) Other Ongoing Concerns (Describe & Itemize) FINANCIAL PROFILE INFORMATION Printed: 11/8/218 Pearl City AFR 18.xlsm

6 Page 4 Page A B C D E F G H I K L M N O P Q R District Name: PEARL CITY COMMUNITY UNIT SCHOOL DISTRICT NO. 2 District Code: County Name: STEPHENSON ESTIMATED FINANCIAL PROFILE SUMMARY (Go to the following website for reference to the Financial Profile) 1. Fund Balance to Revenue Ratio: Total Ratio Score 4 Total Sum of Fund Balance (P8, Cells C81, D81, F81 & I81) Funds 1, 2, 4, 7 + (5 & 8 if negative) 1,217, Weight.35 Total Sum of Direct Revenues (P7, Cell C8, D8, F8 & I8) Funds 1, 2, 4, & 7, 4,792,78. Value 1.4 Less: Operating Debt Pledged to Other Funds (P8, Cell C54 thru D74) Minus Funds 1 & 2 (39,91.) (Excluding C:D57, C:D61, C:D65, C:D69 and C:D73) 2. Expenditures to Revenue Ratio: Total Ratio Score 3 Total Sum of Direct Expenditures (P7, Cell C17, D17, F17, I17) Funds 1, 2 & 4 4,98, Adjustment Total Sum of Direct Revenues (P7, Cell C8, D8, F8, & I8) Funds 1, 2, 4 & 7, 4,792,78. Weight.35 Less: Operating Debt Pledged to Other Funds (P8, Cell C54 thru D74) Minus Funds 1 & 2 (39,91.) (Excluding C:D57, C:D61, C:D65, C:D69 and C:D73) Value 1.5 Possible Adjustment: 3. Days Cash on Hand: Total Days Score 2 Total Sum of Cash & Investments (P5, Cell C4, D4, F4, I4 & C5, D5, F5 & I5) Funds 1, 2 4 & 7 1,217, Weight.1 Total Sum of Direct Expenditures (P7, Cell C17, D17, F17 & I17) Funds 1, 2, 4 divided by 36 13, Value.2 4. Percent of Short-Term Borrowing Maximum Remaining: Total Percent Score 4 Tax Anticipation Warrants Borrowed (P24, Cell F6-7 & F11) Funds 1, 2 & Weight.1 EAV x 85% x Combined Tax Rates (P3, Cell J7 and J1) (.85 x EAV) x Sum of Combined Tax Rates 1,822,46.29 Value.4 5. Percent of Long-Term Debt Margin Remaining: Total Percent Score 4 Long-Term Debt Outstanding (P3, Cell H37) 466, Weight.1 Total Long-Term Debt Allowed (P3, Cell H31) 7,362, Value.4 Estimated 219 Financial Profile Designation: Total Profile Score: 3.45 * * Total Profile Score may change based on data provided on the Financial Profile Information, page 3 and by the timing of mandated categorical payments. Final score will be calculated by ISBE. REVIEW Printed: 11/8/218 Pearl City AFR 18.xlsm

7 Page 5 BASIC FINANCIAL STATEMENTS STATEMENT OF ASSETS AND LIABILITIES ARISING FROM CASH TRANSACTIONS STATEMENT OF POSITION AS OF JUNE 3, 218 Page CURRENT ASSETS (1) A B C D E F G H I J K (1) (2) (3) (4) (5) (6) (7) (8) (9) Acct. # Educational Operations & Maintenance Debt Services Transportation Municipal Retirement/Social Security Capital Projects Working Cash Tort Fire Prevention & Safety Cash (Accounts 111 through 115) 1 122, ,46 63,27 284,161 41,43 3,56 234,229 1, ,299 Investments 12 Taxes Receivable 13 Interfund Receivables 14 Intergovernmental Accounts Receivable 15 Other Receivables 16 Inventory 17 Prepaid Items 18 Other Current Assets (Describe & Itemize) 19 Total Current Assets 122, ,46 63,27 284,161 41,43 3,56 234,229 1, ,299 CAPITAL ASSETS (2) Works of Art & Historical Treasures 21 Land 22 Building & Building Improvements 23 Site Improvements & Infrastructure 24 Capitalized Equipment 25 Construction in Progress 26 Amount Available in Debt Service Funds 34 Amount to be Provided for Payment on Long-Term Debt 35 Total Capital Assets CURRENT LIABILITIES (4) Interfund Payables 41 Intergovernmental Accounts Payable 42 Other Payables 43 Contracts Payable 44 Loans Payable 46 Salaries & Benefits Payable 47 Payroll Deductions & Withholdings 48 (183) Deferred Revenues & Other Current Liabilities 49 Due to Activity Fund Organizations 493 Total Current Liabilities (183) LONG-TERM LIABILITIES (5) Long-Term Debt Payable (General Obligation, Revenue, Other) 511 Total Long-Term Liabilities Reserved Fund Balance ,425 3,56 Unreserved Fund Balance , ,46 63,27 284,161 21, ,229 1, ,299 Investment in General Fixed Assets ASSETS (Enter Whole Dollars) Total Liabilities and Fund Balance 122, ,46 63,27 284,161 41,43 3,56 234,229 1, ,299 Print Date: 11/8/218 Pearl City AFR 18.xlsm

8 Page 6 BASIC FINANCIAL STATEMENTS STATEMENT OF ASSETS AND LIABILITIES ARISING FROM CASH TRANSACTIONS STATEMENT OF POSITION AS OF JUNE 3, 218 Page CURRENT ASSETS (1) Cash (Accounts 111 through 115) 1 A B Acct. # Investments 12 Taxes Receivable 13 Interfund Receivables 14 Intergovernmental Accounts Receivable 15 Other Receivables 16 Inventory 17 Prepaid Items 18 Other Current Assets (Describe & Itemize) 19 Total Current Assets CAPITAL ASSETS (2) Works of Art & Historical Treasures 21 Land 22 Building & Building Improvements 23 Site Improvements & Infrastructure 24 Capitalized Equipment 25 Construction in Progress 26 Amount Available in Debt Service Funds 34 Amount to be Provided for Payment on Long-Term Debt 35 Total Capital Assets CURRENT LIABILITIES (4) Interfund Payables 41 Intergovernmental Accounts Payable 42 Other Payables 43 Contracts Payable 44 Loans Payable 46 Salaries & Benefits Payable 47 Payroll Deductions & Withholdings 48 Deferred Revenues & Other Current Liabilities 49 Due to Activity Fund Organizations 493 Total Current Liabilities LONG-TERM LIABILITIES (5) Long-Term Debt Payable (General Obligation, Revenue, Other) 511 Total Long-Term Liabilities Reserved Fund Balance 714 Unreserved Fund Balance 73 Investment in General Fixed Assets Total Liabilities and Fund Balance ASSETS (Enter Whole Dollars) L M N Account Groups Agency Fund General Fixed Assets 89,975 89,975 89,975 89,975 17,968 11,147,935 31,414 1,31,44 General Long-Term Debt 63,27 43,458 12,57, , , ,665 12,57,361 89,975 12,57, ,665 Print Date: 11/8/218 Pearl City AFR 18.xlsm

9 Page 7 BASIC FINANCIAL STATEMENT STATEMENT OF REVENUES RECEIVED/REVENUES, EXPENDITURES/DISBURSED/EXPENDITURES, OTHER SOURCES (USES) AND CHANGES IN FUND BALANCE ALL FUNDS - FOR THE YEAR ENDING JUNE 3, 218 Page DISBURSEMENTS/EXPENDITURES 12 Instruction 1 2,934,593 69, Support Services 2 1,1,196 47, ,641 82, , Community Services 3 115,236 19,5 15 Payments to Other Districts & Govermental Units 4 245, OTHER SOURCES/USES OF FUNDS 22 OTHER SOURCES OF FUNDS (7) RECEIPTS/REVENUES 45 OTHER USES OF FUNDS (8) A B C D E F G H I J K (1) (2) (3) (4) (5) (6) (7) (8) (9) Description (Enter Whole Dollars) Acct # Educational Operations & Maintenance Debt Services Transportation Municipal Retirement/ Social Security Capital Projects Working Cash Tort Fire Prevention & Safety LOCAL SOURCES 1 1,93, ,753 61, , ,821 21, ,692 27,841 FLOW-THROUGH RECEIPTS/REVENUES FROM ONE DISTRICT TO ANOTHER DISTRICT 2 STATE SOURCES 3 1,843, ,998 FEDERAL SOURCES 4 4,191 Total Direct Receipts/Revenues 4,173, ,753 61, , ,821 21, ,692 27,841 Receipts/Revenues for "On Behalf" Payments ,168 Total Receipts/Revenues 4,443,82 357,753 61, , ,821 21, ,692 27,841 Debt Service 5 634,91 Total Direct Disbursements/Expenditures 4,296,677 47, ,91 276, , , Disbursements/Expenditures for "On Behalf" Payments ,168 Total Disbursements/Expenditures 4,565,845 47, ,91 276, , , Excess of Direct Receipts/Revenues Over (Under) Direct Disbursements/Expenditures 3 PERMANENT TRANSFER FROM VARIOUS FUNDS Abolishment of the Working Cash Fund Abatement of the Working Cash Fund , Transfer of Working Cash Fund Interest 712 3,649 Transfer Among Funds 713 Transfer of Interest 714 2,733 Transfer from Capital Project Fund to O&M Fund 715 Transfer of Excess Fire Prevention & Safety Tax and Interest Proceeds to O&M Fund Transfer to Excess Fire Prevention & Safety Bond and Interest Proceeds to Debt Service 717 Fund 5 SALE OF BONDS (72) Principal on Bonds Sold 721 Premium on Bonds Sold 722 Accrued Interest on Bonds Sold 723 (122,763) (49,362) (32,872) 2,24 17,262 21,287 2,649 27,155 Sale or Compensation for Fixed Assets ,8 Transfer to Debt Service to Pay Principal on Capital Leases 74 38,396 Transfer to Debt Service to Pay Interest on Capital Leases Transfer to Debt Service to Pay Principal on Revenue Bonds 76 Transfer to Debt Service Fund to Pay Interest on Revenue Bonds 77 Transfer to Capital Projects Fund 78 ISBE Loan Proceeds 79 Other Sources Not Classified Elsewhere ,253 Total Other Sources of Funds 16,715 39,91 Print Date: 11/8/218 Pearl City AFR 18.xlsm

10 Page 8 BASIC FINANCIAL STATEMENT STATEMENT OF REVENUES RECEIVED/REVENUES, EXPENDITURES/DISBURSED/EXPENDITURES, OTHER SOURCES (USES) AND CHANGES IN FUND BALANCE ALL FUNDS - FOR THE YEAR ENDING JUNE 3, 218 Page A B C D E F G H I J K (1) (2) (3) (4) (5) (6) (7) (8) (9) Description (Enter Whole Dollars) PERMANENT TRANSFER TO VARIOUS OTHER FUNDS (81) Acct # Educational Operations & Maintenance Debt Services Transportation Municipal Retirement/ Social Security Capital Projects Working Cash Tort Abolishment or Abatement of the Working Cash Fund , Transfer of Working Cash Fund Interest ,649 Transfer Among Funds 813 Transfer of Interest 814 2,733 Transfer from Capital Project Fund to O&M Fund 815 Transfer of Excess Fire Prevention & Safety Tax & Interest Proceeds to O&M Fund Transfer of Excess Fire Prevention & Safety Bond and Interest Proceeds to Debt Service Fund Taxes Pledged to Pay Principal on Capital Leases ,396 Grants/Reimbursements Pledged to Pay Principal on Capital Leases 842 Other Revenues Pledged to Pay Principal on Capital Leases 843 Fund Balance Transfers Pledged to Pay Principal on Capital Leases 844 Taxes Pledged to Pay Interest on Capital Leases Grants/Reimbursements Pledged to Pay Interest on Capital Leases 852 Other Revenues Pledged to Pay Interest on Capital Leases 853 Fund Balance Transfers Pledged to Pay Interest on Capital Leases 854 Taxes Pledged to Pay Principal on Revenue Bonds 861 Grants/Reimbursements Pledged to Pay Principal on Revenue Bonds 862 Other Revenues Pledged to Pay Principal on Revenue Bonds 863 Fund Balance Transfers Pledged to Pay Principal on Revenue Bonds 864 Taxes Pledged to Pay Interest on Revenue Bonds 871 Grants/Reimbursements Pledged to Pay Interest on Revenue Bonds 872 Other Revenues Pledged to Pay Interest on Revenue Bonds 873 Fund Balance Transfers Pledged to Pay Interest on Revenue Bonds 874 Taxes Transferred to Pay for Capital Projects 881 Grants/Reimbursements Pledged to Pay for Capital Projects 882 Other Revenues Pledged to Pay for Capital Projects 883 Fund Balance Transfers Pledged to Pay for Capital Projects 884 Transfer to Debt Service Fund to Pay Principal on ISBE Loans 891 Other Uses Not Classified Elsewhere 899 Total Other Uses of Funds Total Other Sources/Uses of Funds Excess of Receipts/Revenues and Other Sources of Funds (Over/Under) Expenditures/Disbursements and Other Uses of Funds Fire Prevention & Safety 39,91 2,733 13, ,624 36,358 (13,649) (1,139) (49,362) 3,486 2,24 17,262 (82,362) 2,649 27,155 Fund Balances - July 1, , ,768 59, ,957 23,781 3,56 316,591 7, ,144 Other Changes in Fund Balances - Increases (Decreases) (Describe & Itemize) Fund Balances - June 3, , ,46 63,27 284,161 41,43 3,56 234,229 1, ,299 Print Date: 11/8/218 Pearl City AFR 18.xlsm

11 Page 9 STATEMENT OF REVENUES RECEIVED/REVENUES FOR THE YEAR ENDING JUNE 3, 218 Page A B C D E F G H I J K (1) (2) (3) (4) (5) (6) (7) (8) (9) Municipal Description (Enter Whole Dollars) Operations & Fire Prevention & Acct # Educational Debt Services Transportation Retirement/ Social Capital Projects Working Cash Tort Maintenance Safety Security RECEIPTS/REVENUES FROM LOCAL SOURCES (1) AD VALOREM TAXES LEVIED BY LOCAL EDUCATION AGENCY 11 Designated Purposes Levies ( ) 7 1,386,67 293, ,486 18,987 68,143 17, ,748 26,14 Leasing Purposes Levy ,33 Special Education Purposes Levy ,829 FICA/Medicare Only Purposes Levies ,354 Area Vocational Construction Purposes Levy 116 Summer School Purposes Levy 117 Other Tax Levies (Describe & Itemize) 119 Total Ad Valorem Taxes Levied By District 1,435, , ,486 18, ,497 17, ,748 26,14 PAYMENTS IN LIEU OF TAXES 12 Mobile Home Privilege Tax 121 Payments from Local Housing Authorities 122 Corporate Personal Property Replacement Taxes ,699 5,528 Other Payments in Lieu of Taxes (Describe & Itemize) 129 Total Payments in Lieu of Taxes 45,699 5,528 TUITION 13 Regular - Tuition from Pupils or Parents (In State) 1311 Regular - Tuition from Other Districts (In State) 1312 Regular - Tuition from Other Sources (In State) 1313 Regular - Tuition from Other Sources (Out of State) 1314 Summer Sch - Tuition from Pupils or Parents (In State) 1321 Summer Sch - Tuition from Other Districts (In State) 1322 Summer Sch - Tuition from Other Sources (In State) 1323 Summer Sch - Tuition from Other Sources (Out of State) 1324 CTE - Tuition from Pupils or Parents (In State) 1331 CTE - Tuition from Other Districts (In State) 1332 CTE - Tuition from Other Sources (In State) 1333 CTE - Tuition from Other Sources (Out of State) 1334 Special Ed - Tuition from Pupils or Parents (In State) 1341 Special Ed - Tuition from Other Districts (In State) 1342 Special Ed - Tuition from Other Sources (In State) 1343 Special Ed - Tuition from Other Sources (Out of State) 1344 Adult - Tuition from Pupils or Parents (In State) 1351 Adult - Tuition from Other Districts (In State) 1352 Adult - Tuition from Other Sources (In State) 1353 Adult - Tuition from Other Sources (Out of State) 1354 Total Tuition TRANSPORTATION FEES 14 Regular -Transp Fees from Pupils or Parents (In State) 1411 Regular - Transp Fees from Other Districts (In State) 1412 Regular - Transp Fees from Other Sources (In State) ,249 Regular - Transp Fees from Co-curricular Activities (In State) 1415 Regular Transp Fees from Other Sources (Out of State) 1416 Summer Sch - Transp. Fees from Pupils or Parents (In State) 1421 Summer Sch - Transp. Fees from Other Districts (In State) 1422 Summer Sch - Transp. Fees from Other Sources (In State) 1423 Summer Sch - Transp. Fees from Other Sources (Out of State) 1424 CTE - Transp Fees from Pupils or Parents (In State) 1431 CTE - Transp Fees from Other Districts (In State) 1432 CTE - Transp Fees from Other Sources (In State) 1433 Printed Date: 11/8/218 Pearl City AFR 18.xlsm

12 Page 1 STATEMENT OF REVENUES RECEIVED/REVENUES FOR THE YEAR ENDING JUNE 3, 218 Page A B C D E F G H I J K (1) (2) (3) (4) (5) (6) (7) (8) (9) Municipal Description (Enter Whole Dollars) Operations & Fire Prevention & Acct # Educational Debt Services Transportation Retirement/ Social Capital Projects Working Cash Tort Maintenance Safety Security CTE - Transp Fees from Other Sources (Out of State) 1434 Special Ed - Transp Fees from Pupils or Parents (In State) 1441 Special Ed - Transp Fees from Other Districts (In State) 1442 Special Ed - Transp Fees from Other Sources (In State) 1443 Special Ed - Transp Fees from Other Sources (Out of State) 1444 Adult - Transp Fees from Pupils or Parents (In State) 1451 Adult - Transp Fees from Other Districts (In State) 1452 Adult - Transp Fees from Other Sources (In State) 1453 Adult - Transp Fees from Other Sources (Out of State) 1454 Total Transportation Fees 3,249 EARNINGS ON INVESTMENTS 15 Interest on Investments 151 1,921 6,123 2,733 2, , ,737 Gain or Loss on Sale of Investments 152 Total Earnings on Investments 1,921 6,123 2,733 2, , ,737 FOOD SERVICE 16 Sales to Pupils - Lunch ,276 Sales to Pupils - Breakfast 1612 Sales to Pupils - A la Carte 1613 Sales to Pupils - Other (Describe & Itemize) ,165 Sales to Adults 162 3,62 Other Food Service (Describe & Itemize) Total Food Service 127,61 DISTRICT/SCHOOL ACTIVITY INCOME 17 Admissions - Athletic ,773 Admissions - Other (Describe & Itemize) 1719 Fees ,846 Book Store Sales 173 1,53 Other District/School Activity Revenue (Describe & Itemize) 179 Total District/School Activity Income 5,122 TEXTBOOK INCOME 18 Rentals - Regular Textbooks ,216 Rentals - Summer School Textbooks 1812 Rentals - Adult/Continuing Education Textbooks 1813 Rentals - Other (Describe & Itemize) Sales - Regular Textbooks 1821 Sales - Summer School Textbooks 1822 Sales - Adult/Continuing Education Textbooks 1823 Sales - Other (Describe & Itemize) 1829 Other (Describe & Itemize) 189 Total Textbook Income 17,316 OTHER REVENUE FROM LOCAL SOURCES 19 Rentals 191 Contributions and Donations from Private Sources 192 9,119 Impact Fees from Municipal or County Governments 193 Services Provided Other Districts 194 Refund of Prior Years' Expenditures Payments of Surplus Moneys from TIF Districts ,31 31, Drivers' Education Fees 197 8,75 Proceeds from Vendors' Contracts 198 School Facility Occupation Tax Proceeds 1983 Payment from Other Districts 1991 Sale of Vocational Projects 1992 Printed Date: 11/8/218 Pearl City AFR 18.xlsm

13 Page 11 STATEMENT OF REVENUES RECEIVED/REVENUES FOR THE YEAR ENDING JUNE 3, 218 Page A B C D E F G H I J K (1) (2) (3) (4) (5) (6) (7) (8) (9) Municipal Description (Enter Whole Dollars) Operations & Fire Prevention & Acct # Educational Debt Services Transportation Retirement/ Social Capital Projects Working Cash Tort Maintenance Safety Security Other Local Fees (Describe & Itemize) Total Receipts/Revenues from Local Sources 1 1,93, ,753 61, , ,821 21, ,692 27,841 Other Local Revenues (Describe & Itemize) ,551 27,15 1,197 Total Other Revenue from Local Sources 251,976 58,15 1,197 FLOW-THROUGH RECEIPTS/REVENUES FROM ONE DISTRICT TO ANOTHER DISTRICT (2) Flow-through Revenue from State Sources 21 Flow-through Revenue from Federal Sources 22 Other Flow-Through (Describe & Itemize) 23 Total Flow-Through Receipts/Revenues from One District to Another District 2 RECEIPTS/REVENUES FROM STATE SOURCES (3) UNRESTRICTED GRANTS-IN-AID (31-399) Evidence Based Funding Formula (Section ) 31 1,647,776 General State Aid - Hold Harmless/Supplemental 32 Reorganization Incentives (Accounts ) 35 Other Unrestricted Grants-In-Aid from State Sources (Describe & Itemize) 399 Total Unrestricted Grants-In-Aid 1,647,776 RESTRICTED GRANTS-IN-AID (31-39) SPECIAL EDUCATION Special Education - Private Facility Tuition 31 18,285 Special Education - Funding for Children Requiring Sp ED Services ,684 Special Education - Personnel ,398 Special Education - Orphanage - Individual 312 Special Education - Orphanage - Summer Individual 313 Special Education - Summer School 3145 Special Education - Other (Describe & Itemize) 3199 Total Special Education 94,367 CAREER AND TECHNICAL EDUCATION (CTE) CTE - Technical Education - Tech Prep 32 CTE - Secondary Program Improvement (CTEI) 322 4,695 CTE - WECEP 3225 CTE - Agriculture Education ,989 CTE - Instructor Practicum 324 CTE - Student Organizations 327 CTE - Other (Describe & Itemize) 3299 Total Career and Technical Education 8,684 BILINGUAL EDUCATION Bilingual Ed - Downstate - TPI and TBE 335 Bilingual Education Downstate - Transitional Bilingual Education 331 Total Bilingual Ed Printed Date: 11/8/218 Pearl City AFR 18.xlsm

14 Page 12 STATEMENT OF REVENUES RECEIVED/REVENUES FOR THE YEAR ENDING JUNE 3, 218 Page 12 A B C D E F G H I J K 1 (1) (2) (3) (4) (5) (6) (7) (8) (9) Municipal Description (Enter Whole Dollars) Operations & Fire Prevention & Acct # Educational Debt Services Transportation Retirement/ Social Capital Projects Working Cash Tort Maintenance Safety 2 Security State Free Lunch & Breakfast School Breakfast Initiative Driver Education Adult Ed (from ICCB) Adult Ed - Other (Describe & Itemize) , RESTRICTED GRANTS-IN-AID RECEIVED DIRECTLY FROM FEDERAL GOVT (445-49) Head Start Construction (Impact Aid) MAGNET Other Restricted Grants-In-Aid Received Directly from the Federal Govt (Describe & Itemize) Total Restricted Grants-In-Aid Received Directly from Federal Govt RESTRICTED GRANTS-IN-AID RECEIVED FROM FEDERAL GOVT THRU THE STATE ( ) TRANSPORTATION Transportation - Regular and Vocational 35 13,74 Transportation - Special Education ,294 Transportation - Other (Describe & Itemize) 3599 Total Transportation 162,998 Learning Improvement - Change Grants 361 Scientific Literacy 366 Truant Alternative/Optional Education 3695 Early Childhood - Block Grant ,78 Reading Improvement Block Grant 3715 Reading Improvement Block Grant - Reading Recovery 372 Continued Reading Improvement Block Grant 3725 Continued Reading Improvement Block Grant (2% Set Aside) 3726 Chicago General Education Block Grant 3766 Chicago Educational Services Block Grant 3767 School Safety & Educational Improvement Block Grant 3775 Technology - Technology for Success 378 State Charter Schools 3815 Extended Learning Opportunities - Summer Bridges 3825 Infrastructure Improvements - Planning/Construction 392 School Infrastructure - Maintenance Projects 3925 Other Restricted Revenue from State Sources (Describe & Itemize) ,5 Total Restricted Grants-In-Aid 195, ,998 Total Receipts from State Sources 3 1,843, ,998 RECEIPTS/REVENUES FROM FEDERAL SOURCES (4) UNRESTRICTED GRANTS-IN-AID RECEIVED DIRECTLY FROM FEDERAL GOVT (41-49) Federal Impact Aid 41 Other Unrestricted Grants-In-Aid Received Directly from the Fed Govt (Describe & Itemize) Total Unrestricted Grants-In-Aid Received Directly from the Federal Govt TITLE V 49 Title V - Innovation and Flexibility Formula 41 Title V - District Projects ,669 39,669 Printed Date: 11/8/218 Pearl City AFR 18.xlsm

15 Page 13 STATEMENT OF REVENUES RECEIVED/REVENUES FOR THE YEAR ENDING JUNE 3, 218 Page A B C D E F G H I J K (1) (2) (3) (4) (5) (6) (7) (8) (9) Municipal Description (Enter Whole Dollars) Operations & Fire Prevention & Acct # Educational Debt Services Transportation Retirement/ Social Capital Projects Working Cash Tort Maintenance Safety Security Title V - Rural Education Initiative (REI) 417 Title V - Other (Describe & Itemize) 4199 Total Title V FOOD SERVICE Breakfast Start-Up Expansion 42 National School Lunch Program ,699 Special Milk Program School Breakfast Program 422 1,676 Summer Food Service Program 4225 Child Adult Care Food Program 4226 Fresh Fruits & Vegetables 424 Food Service - Other (Describe & Itemize) 4299 Total Food Service 83,96 TITLE I Title I - Low Income 43 67,59 Title I - Low Income - Neglected, Private 435 Title I - Comprehensive School Reform 4332 Title I - Reading First 4334 Title I - Even Start 4335 Title I - Reading First SEA Funds 4337 Title I - Migrant Education 434 Title I - Other (Describe & Itemize) 4399 Total Title I 67,59 TITLE IV Title IV - Safe & Drug Free Schools - Formula 44 Title IV - 21st Century Comm Learning Centers 4421 Title IV - Other (Describe & Itemize) 4499 Total Title IV FEDERAL - SPECIAL EDUCATION Fed - Spec Education - Preschool Flow-Through 46 1,734 Fed - Spec Education - Preschool Discretionary 465 Fed - Spec Education - IDEA - Flow Through ,742 Fed - Spec Education - IDEA - Room & Board ,122 Fed - Spec Education - IDEA - Discretionary 463 Fed - Spec Education - IDEA - Other (Describe & Itemize) 4699 Total Federal - Special Education 178,598 CTE - PERKINS CTE - Perkins - Title IIIE - Tech Prep 477 CTE - Other (Describe & Itemize) 4799 Total CTE - Perkins Federal - Adult Education 481 ARRA - General State Aid - Education Stabilization 485 ARRA - Title I - Low Income 4851 ARRA - Title I - Neglected, Private 4852 ARRA - Title I - Delinquent, Private 4853 ARRA - Title I - School Improvement (Part A) 4854 ARRA - Title I - School Improvement (Section 13g) 4855 ARRA - IDEA - Part B - Preschool 4856 ARRA - IDEA - Part B - Flow-Through 4857 ARRA - Title IID - Technology-Formula 486 ARRA - Title IID - Technology-Competitive 4861 ARRA - McKinney - Vento Homeless Education 4862 Printed Date: 11/8/218 Pearl City AFR 18.xlsm

16 Page 14 STATEMENT OF REVENUES RECEIVED/REVENUES FOR THE YEAR ENDING JUNE 3, 218 Page A B C D E F G H I J K (1) (2) (3) (4) (5) (6) (7) (8) (9) Municipal Description (Enter Whole Dollars) Operations & Fire Prevention & Acct # Educational Debt Services Transportation Retirement/ Social Capital Projects Working Cash Tort Maintenance Safety Security ARRA - Child Nutrition Equipment Assistance 4863 Impact Aid Formula Grants 4864 Impact Aid Competitive Grants 4865 Qualified Zone Academy Bond Tax Credits 4866 Qualified School Construction Bond Credits 4867 Build America Bond Tax Credits 4868 Build America Bond Interest Reimbursement 4869 ARRA - General State Aid - Other Govt Services Stabilization 487 Other ARRA Funds - II 4871 Other ARRA Funds - III 4872 Other ARRA Funds - IV 4873 Other ARRA Funds - V 4874 ARRA - Early Childhood 4875 Other ARRA Funds VII 4876 Other ARRA Funds VIII 4877 Other ARRA Funds IX 4878 Other ARRA Funds X 4879 Other ARRA Funds Ed Job Fund Program 488 Total Stimulus Programs Race to the Top Program 491 Race to the Top - Preschool Expansion Grant 492 Advanced Placement Fee/International Baccalaureate 494 Title III - Immigrant Education Program (IEP) 495 Title III - Language Inst Program - Limited Eng (LIPLEP) 499 Learn & Serve America 491 McKinney Education for Homeless Children 492 Title II - Eisenhower Professional Development Formula 493 Title II - Teacher Quality 4932 Federal Charter Schools 496 Medicaid Matching Funds - Administrative Outreach ,268 Medicaid Matching Funds - Fee-for-Service Program ,97 Other Restricted Revenue from Federal Sources (Describe & Itemize) 4999 Total Restricted Grants-In-Aid Received from the Federal Govt Thru the State 36,522 Total Receipts/Revenues from Federal Sources 4 4,191 Total Direct Receipts/Revenues 4,173, ,753 61, , ,821 21, ,692 27,841 Printed Date: 11/8/218 Pearl City AFR 18.xlsm

17 Page 15 STATEMENT OF EXPENDITURES DISBURSED/EXPENDITURES, BUDGET TO ACTUAL FOR THE YEAR ENDING JUNE 3, 218 Page SUPPORT SERVICES (ED) A B C D E F G H I J K L (1) (2) (3) (4) (5) (6) (7) (8) (9) Funct # INSTRUCTION (ED) 1 Salaries Employee Benefits Purchased Services Supplies & Materials Capital Outlay Other Objects Non-Capitalized Equipment Regular Programs 11 1,46, ,927 18,442 46,92 77,719 2,31,556 2,2,1 Tuition Payment to Charter Schools ,25 Pre-K Programs ,145 6, ,1 41,7 Special Education Programs (Functions ) 12 29,61 43,858 3, , ,55 Special Education Programs Pre-K ,151 6,725 26,876 27,4 Remedial and Supplemental Programs K ,65 19,58 2,895 93,558 95,2 Remedial and Supplemental Programs Pre-K 1275 Adult/Continuing Education Programs 13 CTE Programs ,361 33,171 1, ,219 21, ,975 22,85 Interscholastic Programs 15 68,779 2,76 19,848 7,88 99,195 12,575 Summer School Programs 16 1, ,25 2,4 Gifted Programs 165 Driver's Education Programs 17 31,5 8,645 5,2 44,895 43,55 Bilingual Programs 18 Truant Alternative & Optional Programs 19 Pre-K Programs - Private Tuition 191 Regular K-12 Programs - Private Tuition ,115 56, , Special Education Programs K-12 - Private Tuition 1912 Special Education Programs Pre-K - Tuition 1913 Remedial/Supplemental Programs K-12 - Private Tuition 1914 Remedial/Supplemental Programs Pre-K - Private Tuition 1915 Adult/Continuing Education Programs - Private Tuition 1916 CTE Programs - Private Tuition 1917 Interscholastic Programs - Private Tuition 1918 Summer School Programs - Private Tuition 1919 Gifted Programs - Private Tuition 192 Bilingual Programs - Private Tuition 1921 Truants Alternative/Optional Ed Progms - Private Tuition , 2, 2, Total Instruction 1 1 2,14, ,124 57,757 59,564 83,938 79,497 2,934,593 3,2,575 SUPPORT SERVICES - PUPILS Description (Enter Whole Dollars) 1 - EDUCATIONAL FUND (ED) Attendance & Social Work Services 211 Guidance Services 212 4,832 13, ,943 54,575 Health Services ,993 15, ,682 68,55 Psychological Services ,248 61,248 Speech Pathology & Audiology Services ,63 24,63 86,5 Other Support Services - Pupils (Describe & Itemize) 219 Total Support Services - Pupils 21 93,825 28,714 86, ,476 29,625 SUPPORT SERVICES - INSTRUCTIONAL STAFF Improvement of Instruction Services 221 2,3 2,3 Educational Media Services ,86 1,39 3,224 44,69 43,8 Assessment & Testing 223 Total Support Services - Instructional Staff 22 39,86 3,339 3,224 46,369 43,8 SUPPORT SERVICES - GENERAL ADMINISTRATION Board of Education Services 231 1,56 23,17 24,667 25,27 Executive Administration Services ,779 26,673 33, , , ,66 Special Area Administration Services 233 Tort Immunity Services Total Support Services - General Administration 23 13,339 26,673 56, , , ,93 Termination Benefits Total Budget Print Date: 11/8/218 Pearl City AFR 18.xlsm

18 Page 16 STATEMENT OF EXPENDITURES DISBURSED/EXPENDITURES, BUDGET TO ACTUAL FOR THE YEAR ENDING JUNE 3, 218 Page A B C D E F G H I J K L (1) (2) (3) (4) (5) (6) (7) (8) (9) Description (Enter Whole Dollars) Funct # Salaries Employee Benefits Purchased Services Supplies & Materials Capital Outlay Other Objects Non-Capitalized Equipment 75 COMMUNITY SERVICES (ED) 3 12,633 6,8 45 5, , ,85 76 PAYMENTS TO OTHER DISTRICTS & GOVT UNITS (ED) DEBT SERVICES (ED) SUPPORT SERVICES - SCHOOL ADMINISTRATION Office of the Principal Services ,43 52,314 1, , , Other Support Services - School Admin (Describe & Itemize) 249 Total Support Services - School Administration 24 26,43 52,314 1, , , SUPPORT SERVICES - BUSINESS Direction of Business Support Services 251 Fiscal Services , , ,436 6,4 Operation & Maintenance of Plant Services 254 Pupil Transportation Services Food Services , ,34 148, ,5 Internal Services 257 Total Support Services - Business , ,433 81,793 27, ,975 SUPPORT SERVICES - CENTRAL Direction of Central Support Services 261 Planning, Research, Development, & Evaluation Services 262 Information Services 263 Staff Services 264 Data Processing Services 266 Total Support Services - Central 26 Other Support Services (Describe & Itemize) Total Support Services 2 637,988 17, ,859 85,949 9,653 1,1,196 1,,55 PAYMENTS TO OTHER GOVT UNITS (IN-STATE) Payments for Regular Programs 411 Payments for Special Education Programs ,7 173,7 177,8 Payments for Adult/Continuing Education Programs 413 Payments for CTE Programs 414 Payments for Community College Programs 417 Other Payments to In-State Govt. Units (Describe & Itemize) 419 1,885 1,885 Total Payments to Other Govt Units (In-State) ,7 1, , ,8 Payments for Regular Programs - Tuition 421 Payments for Special Education Programs - Tuition 422 1,349 1,349 28, Payments for Adult/Continuing Education Programs - Tuition 423 Payments for CTE Programs - Tuition 424 Payments for Community College Programs - Tuition 427 Payments for Other Programs - Tuition 428 Other Payments to In-State Govt Units 429 Total Payments to Other Govt Units -Tuition (In State) 42 1,349 1,349 28, Payments for Regular Programs - Transfers 431 Payments for Special Education Programs - Transfers 432 Payments for Adult/Continuing Ed Programs-Transfers 433 Payments for CTE Programs - Transfers 434 Payments for Community College Program - Transfers 437 Payments for Other Programs - Transfers 438 Other Payments to In-State Govt Units - Transfers 439 Total Payments to Other Govt Units -Transfers (In-State) 43 Payments to Other Govt Units (Out-of-State) 44 6,411 6,411 Total Payments to Other Govt Units 4 173,7 72, ,652 25,8 DEBT SERVICES - INTEREST ON SHORT-TERM DEBT Tax Anticipation Warrants 511 Print Date: 11/8/218 Pearl City AFR 18.xlsm Termination Benefits Total Budget

19 Page 17 STATEMENT OF EXPENDITURES DISBURSED/EXPENDITURES, BUDGET TO ACTUAL FOR THE YEAR ENDING JUNE 3, 218 Page A B C D E F G H I J K L (1) (2) (3) (4) (5) (6) (7) (8) (9) Description (Enter Whole Dollars) Funct # Salaries Employee Benefits Purchased Services Supplies & Materials Capital Outlay Other Objects Non-Capitalized Equipment 113 PROVISIONS FOR CONTINGENCIES (ED) Total Direct Disbursements/Expenditures 2,845, ,671 39, ,271 93, ,142 4,296,677 4,326, Excess (Deficiency) of Receipts/Revenues Over Disbursements/Expenditures (122,763) OPERATIONS & MAINTENANCE FUND (O&M) 118 SUPPORT SERVICES (O&M) COMMUNITY SERVICES (O&M) DEBT SERVICES (O&M) Tax Anticipation Notes 512 Corporate Personal Prop. Repl. Tax Anticipation Notes 513 State Aid Anticipation Certificates 514 Other Interest on Short-Term Debt 515 Total Interest on Short-Term Debt 51 Debt Services - Interest on Long-Term Debt 52 Total Debt Services 5 SUPPORT SERVICES - PUPILS Other Support Services - Pupils (Describe & Itemize) 219 SUPPORT SERVICES - BUSINESS Direction of Business Support Services 251 Facilities Acquisition & Construction Services 253 Operation & Maintenance of Plant Services ,866 27,112 76, ,61 62,53 47,115 46, Pupil Transportation Services 255 Food Services 256 Total Support Services - Business ,866 27,112 76, ,61 62,53 47,115 46, Other Support Services (Describe & Itemize) 29 Total Support Services 2 125,866 27,112 76, ,61 62,53 47,115 46, PAYMENTS TO OTHER DIST & GOVT UNITS (O&M) 4 PAYMENTS TO OTHER GOVT UNITS (IN-STATE) Payments for Regular Programs 411 Payments for Special Education Programs 412 Payments for CTE Programs 414 Other Payments to In-State Govt. Units (Describe & Itemize) 419 Total Payments to Other Govt. Units (In-State) 41 Payments to Other Govt. Units (Out of State) 44 Total Payments to Other Govt Units 4 DEBT SERVICES - INTEREST ON SHORT-TERM DEBT Tax Anticipation Warrants 511 Tax Anticipation Notes 512 Corporate Personal Prop. Repl. Tax Anticipation Notes 513 State Aid Anticipation Certificates 514 Other Interest on Short-Term Debt (Describe & Itemize) 515 Total Debt Service - Interest on Short-Term Debt 51 DEBT SERVICE - INTERST ON LONG-TERM DEBT 52 Total Debt Services 5 15 PROVISIONS FOR CONTINGENCIES (O&M) Total Direct Disbursements/Expenditures Excess (Deficiency) of Receipts/Revenues/Over Disbursements/ Expenditures DEBT SERVICES (DS) 155 PAYMENTS TO OTHER DIST & GOVT UNITS (DS) PAYMENTS TO OTHER DIST & GOVT UNITS (In-State) 157 Payments for Regular Programs 411 Print Date: 11/8/218 Pearl City AFR 18.xlsm Termination Benefits 125,866 27,112 76, ,61 62,53 47,115 46, (49,362) Total Budget

20 Page 18 STATEMENT OF EXPENDITURES DISBURSED/EXPENDITURES, BUDGET TO ACTUAL FOR THE YEAR ENDING JUNE 3, 218 Page 18 A B C D E F G H I J K L 1 (1) (2) (3) (4) (5) (6) (7) (8) (9) Description (Enter Whole Dollars) Employee Purchased Supplies & Non-Capitalized Termination Funct # Salaries Capital Outlay Other Objects 2 Benefits Services Materials Equipment Benefits Total Budget 158 Payments for Special Education Programs 159 Other Payments to In-State Govt Units (Describe & Itemize) 16 Total Payments to Other Districts & Govt Units (In-State) DEBT SERVICES (DS) PROVISION FOR CONTINGENCIES (DS) Total Disbursements/ Expenditures 634,91 634,91 633,2 175 Excess (Deficiency) of Receipts/Revenues Over Disbursements/Expenditures (32,872) TRANSPORTATION FUND (TR) 178 SUPPORT SERVICES (TR) COMMUNITY SERVICES (TR) PAYMENTS TO OTHER DIST & GOVT UNITS (TR) DEBT SERVICES (TR) DEBT SERVICES - INTEREST ON SHORT-TERM DEBT Tax Anticipation Warrants 511 Tax Anticipation Notes 512 Corporate Personal Prop. Repl. Tax Anticipation Notes 513 State Aid Anticipation Certificates 514 Other Interest on Short-Term Debt (Describe & Itemize) 515 Total Debt Services - Interest On Short-Term Debt 51 DEBT SERVICES - INTEREST ON LONG-TERM DEBT 52 42,192 42,192 41,417 DEBT SERVICES - PAYMENTS OF PRINCIPAL ON LONG-TERM DEBT 53 (Lease/Purchase Principal Retired) , , ,783 DEBT SERVICES - OTHER (Describe & Itemize) 54 Total Debt Services 5 634,91 634,91 633,2 SUPPORT SERVICES - PUPILS Other Support Services - Pupils (Describe & Itemize) 219 SUPPORT SERVICES - BUSINESS Pupil Transportation Services ,283 12,637 3,76 22, , ,163 Other Support Services (Describe & Itemize) 29 Total Support Services 2 121,283 12,637 3,76 22, , ,163 PAYMENTS TO OTHER GOVT UNITS (IN-STATE) Payments for Regular Programs 411 Payments for Special Education Programs 412 Payments for Adult/Continuing Education Programs 413 Payments for CTE Programs 414 Payments for Community College Programs 417 Other Payments to In-State Govt. Units (Describe & Itemize) 419 Total Payments to Other Govt. Units (In-State) 41 PAYMENTS TO OTHER GOVT UNITS (OUT-OF-STATE) 44 Total Payments to Other Govt Units 4 DEBT SERVICE - INTEREST ON SHORT-TERM DEBT Tax Anticipation Warrants 511 Tax Anticipation Notes 512 Corporate Personal Prop. Repl. Tax Anticipation Notes 513 State Aid Anticipation Certificates 514 Other Interest on Short-Term Debt (Describe & Itemize) 515 Total Debt Services - Interest On Short-Term Debt 51 Print Date: 11/8/218 Pearl City AFR 18.xlsm

21 Page 19 STATEMENT OF EXPENDITURES DISBURSED/EXPENDITURES, BUDGET TO ACTUAL FOR THE YEAR ENDING JUNE 3, 218 Page A B C D E F G H I J K L (1) (2) (3) (4) (5) (6) (7) (8) (9) Description (Enter Whole Dollars) Funct # Salaries Employee Benefits Purchased Services Supplies & Materials Capital Outlay Other Objects Non-Capitalized Equipment 29 PROVISION FOR CONTINGENCIES (TR) 6 21 Total Disbursements/ Expenditures 121,283 12,637 3,76 22, , , Excess (Deficiency) of Receipts/Revenues Over Disbursements/Expenditures 2, MUNICIPAL RETIREMENT/SOCIAL SECURITY FUND (MR/SS) SUPPORT SERVICES (MR/SS) DEBT SERVICES - INTEREST ON LONG-TERM DEBT 52 DEBT SERVICE - PAYMENTS OF PRINCIPAL ON LONG-TERM DEBT 53 (Lease/Purchase Principal Retired) 11 DEBT SERVICES - OTHER (Describe & Itemize) 54 Total Debt Services 5 INSTRUCTION (MR/SS) 1 Regular Programs 11 29,756 29,756 35,75 Pre-K Programs ,633 2,633 2,95 Special Education Programs (Functions ) 12 27,144 27,144 22,1 Special Education Programs - Pre-K Remedial and Supplemental Programs - K ,318 3,318 3,6 Remedial and Supplemental Programs - Pre-K 1275 Adult/Continuing Education Programs 13 CTE Programs 14 1,865 1,865 2,15 Interscholastic Programs 15 4,13 4,13 5,39 Summer School Programs Gifted Programs 165 Driver's Education Programs Bilingual Programs 18 Truants' Alternative & Optional Programs 19 Total Instruction 1 69,555 69,555 72,245 SUPPORT SERVICES - PUPILS Attendance & Social Work Services 211 Guidance Services Health Services Psychological Services 214 Speech Pathology & Audiology Services 215 Other Support Services - Pupils (Describe & Itemize) 219 Total Support Services - Pupils 21 1,454 1,454 1,65 SUPPORT SERVICES - INSTRUCTIONAL STAFF Improvement of Instruction Services 221 Educational Media Services 222 6,584 6,584 7,6 Assessment & Testing 223 Total Support Services - Instructional Staff 22 6,584 6,584 7,6 SUPPORT SERVICES - GENERAL ADMINISTRATION Board of Education Services Executive Administration Services 232 Service Area Administrative Services 233 Claims Paid from Self Insurance Fund 2361 Workers' Compensation or Workers' Occupation Disease Acts Pymts 2362 Unemployment Insurance Pymts 2363 Insurance Payments (Regular or Self-Insurance) 2364 Risk Management and Claims Services Payments 2365 Termination Benefits Total Budget Print Date: 11/8/218 Pearl City AFR 18.xlsm

22 Page 2 STATEMENT OF EXPENDITURES DISBURSED/EXPENDITURES, BUDGET TO ACTUAL FOR THE YEAR ENDING JUNE 3, 218 Page A B C D E F G H I J K L (1) (2) (3) (4) (5) (6) (7) (8) (9) Description (Enter Whole Dollars) Funct # Salaries Employee Benefits Purchased Services Supplies & Materials Capital Outlay Other Objects Non-Capitalized Equipment 28 COMMUNITY SERVICES (MR/SS) 3 19,5 19,5 2,3 281 PAYMENTS TO OTHER DIST & GOVT UNITS (MR/SS) DEBT SERVICES (MR/SS) Judgment and Settlements 2366 Educational, Inspectional, Supervisory Services Related to Loss Prevention or 2367 Reduction Reciprocal Insurance Payments 2368 Legal Services 2369 Total Support Services - General Administration SUPPORT SERVICES - SCHOOL ADMINISTRATION Office of the Principal Services ,289 12,289 13,5 Other Support Services - School Administration (Describe & Itemize) 249 Total Support Services - School Administration 24 12,289 12,289 13,5 SUPPORT SERVICES - BUSINESS Direction of Business Support Services 251 Fiscal Services 252 8,791 8,791 9,8 Facilities Acquisition & Construction Services 253 Operation & Maintenance of Plant Services ,88 22,88 24,6 Pupil Transportation Services ,913 18,913 2,525 Food Services ,969 11,969 13,1 Internal Services 257 Total Support Services - Business 25 62,553 62,553 68,25 SUPPORT SERVICES - CENTRAL Direction of Central Support Services 261 Planning, Research, Development, & Evaluation Services 262 Information Services 263 Staff Services 264 Data Processing Services 266 Total Support Services - Central 26 Other Support Services (Describe & Itemize) 29 Total Support Services 2 82,999 82,999 9,95 Payments for Regular Programs 411 Payments for Special Education Programs 412 Payments for CTE Programs 414 Total Payments to Other Govt Units 4 DEBT SERVICE - INTEREST ON SHORT-TERM DEBT Tax Anticipation Warrants 511 Tax Anticipation Notes 512 Corporate Personal Prop. Repl. Tax Anticipation Notes 513 State Aid Anticipation Certificates 514 Other (Describe & Itemize) 515 Total Debt Services - Interest PROVISION FOR CONTINGENCIES (MR/SS) Total Disbursements/Expenditures 296 Excess (Deficiency) of Receipts/Revenues Over Disbursements/Expenditures 297 Termination Benefits 171, , ,495 Total 17,262 Budget Print Date: 11/8/218 Pearl City AFR 18.xlsm

23 Page 21 STATEMENT OF EXPENDITURES DISBURSED/EXPENDITURES, BUDGET TO ACTUAL FOR THE YEAR ENDING JUNE 3, 218 Page A B C D E F G H I J K L (1) (2) (3) (4) (5) (6) (7) (8) (9) Description (Enter Whole Dollars) Funct # 34 PAYMENTS TO OTHER DIST & GOVT UNITS (CP) PROVISION FOR CONTINGENCIES (S&C/CI) Total Disbursements/ Expenditures 313 Excess (Deficiency) of Receipts/Revenues Over Disbursements/Expenditures WORKING CASH (WC) TORT FUND (TF) DEBT SERVICES (TF) SUPPORT SERVICES (CP) 2 SUPPORT SERVICES - BUSINESS 6 - CAPITAL PROJECTS (CP) Salaries Employee Benefits Purchased Services Supplies & Materials Capital Outlay Other Objects Non-Capitalized Equipment Facilities Acquisition and Construction Services 253 Other Support Services (Describe & Itemize) 29 Total Support Services 2 PAYMENTS TO OTHER GOVT UNITS (In-State) Payments to Regular Programs (In-State) 411 Payments for Special Education Programs 412 Payments for CTE Programs 414 Other Payments to In-State Govt. Units (Describe & Itemize) 419 Total Payments to Other Govt Units 4 SUPPORT SERVICES - GENERAL ADMINISTRATION 341 PROVISIONS FOR CONTINGENCIES (TF) Total Disbursements/Expenditures Excess (Deficiency) of Receipts/Revenues Over Disbursements/Expenditures 111,43 111,43 2, ,188 Termination Benefits Claims Paid from Self Insurance Fund 2361 Workers' Compensation or Workers' Occupation Disease Acts Pymts ,764 22,764 22,788 Unemployment Insurance Payments ,294 2,294 2,5 Insurance Payments (Regular or Self-Insurance) ,384 3,384 3,4 Risk Management and Claims Services Payments 2365 Judgment and Settlements 2366 Educational, Inspectional, Supervisory Services Related to Loss Prevention or 2367 Reduction 6,5 6,5 6,5 Reciprocal Insurance Payments 2368 Legal Services ,11 49,11 51, Property Insurance (Buildings & Grounds) 2371 Vehicle Insurance (Transporation) 2372 Total Support Services - General Administration 2 111,43 111,43 113,188 PAYMENTS TO OTHER DIST & GOVT UNITS (TF) 4 Payments for Regular Programs 411 Payments for Special Education Programs 412 Total Payments to Other Dist & Govt Units 4 DEBT SERVICES - INTEREST ON SHORT-TERM DEBT Tax Anticipation Warrants 511 Corporate Personal Prop. Repl. Tax Anticipation Notes 513 Other Interest or Short-Term Debt 515 Total Debt Services - Interest on Short-Term Debt 5 Total Budget Print Date: 11/8/218 Pearl City AFR 18.xlsm

24 Page 22 STATEMENT OF EXPENDITURES DISBURSED/EXPENDITURES, BUDGET TO ACTUAL FOR THE YEAR ENDING JUNE 3, 218 Page A B C D E F G H I J K L (1) (2) (3) (4) (5) (6) (7) (8) (9) Description (Enter Whole Dollars) Funct # Salaries Employee Benefits Purchased Services Supplies & Materials Capital Outlay Other Objects Non-Capitalized Equipment 346 SUPPORT SERVICES (FP&S) SUPPORT SERVICES - BUSINESS Facilities Acquisition & Construction Services Operation & Maintenance of Plant Services Total Support Services - Business Other Support Services (Describe & Itemize) Total Support Services , 1, 1, DEBT SERVICES (FP&S) FIRE PREVENTION & SAFETY FUND (FP&S) PAYMENTS TO OTHER DIST & GOVT UNITS (FP&S) 4 Payments to Regular Programs 411 Payments to Special Education Programs 412 Other Payments to In-State Govt. Units (Describe & Itemize) 419 Total Payments to Other Govt Units 4 DEBT SERVICES- INTEREST ON SHORT-TERM DEBT Tax Anticipation Warrants 511 Other Interest on Short-Term Debt (Describe & Itemize) 515 Total Debt Service - Interest on Short-Term Debt 51 DEBT SERVICES - INTEREST ON LONG-TERM DEBT 52 Debt Service - Payments of Principal on Long-Term Debt 15 (Lease/Purchase 53 Principal Retired) Total Debt Service PROVISION FOR CONTINGENCIES (FP&S) Total Disbursements/Expenditures Excess (Deficiency) of Receipts/Revenues Over Disbursements/Expenditures ,155 1, Termination Benefits Total Budget Print Date: 11/8/218 Pearl City AFR 18.xlsm

25 Page 23 Page 23 A B C D E F SCHEDULE OF AD VALOREM TAX RECEIPTS Description (Enter Whole Dollars) Taxes Received thru (from 216 Levy & Prior Levies) * Taxes Received (from the 217 Levy) Taxes Received (from 216 & Prior Levies) Total Estimated Taxes (from the 217 Levy) Estimated Taxes Due (from the 217 Levy) (Column B - C) (Column E - C) Educational 1,386,67 6,13 1,38,54 1,68,999 1,62,896 Operations & Maintenance 293, ,81 188, ,737 Debt Services ** 598,486 2, , ,14 62,736 Transportation 18, , , ,24 Municipal Retirement 68, ,826 83,65 83,288 Capital Improvements Working Cash 17, ,567 18,79 18,638 Tort Immunity 112, , , ,18 Fire Prevention & Safety 26, ,999 27,686 27,581 Leasing Levy 27, ,193 28,957 28,847 Special Education 21, ,741 23,152 23,64 Area Vocational Construction Social Security/Medicare Only 114, ,937 19,924 19,57 Summer School Other (Describe & Itemize) Totals 2,775,724 11,187 2,764,537 2,947,793 2,936,66 * The formulas in column B are unprotected to be overidden when reporting on a ACCRUAL basis. ** All tax receipts for debt service payments on bonds must be recorded on line 6 (Debt Services). Print Date: 11/8/218 Pearl City AFR 18.xlsm

26 Page 24 Page 24 A B C D E F G H I J Outstanding Beginning July 1, 217 Issued July 1, 217 thru June 3, 218 Retired July 1, 217 thru June 3, 218 Outstanding Ending June 3, 218 Educational Fund Operations & Maintenance Fund Debt Services - Construction Debt Services - Working Cash Debt Services - Refunding Bonds Transportation Fund Municipal Retirement/Social Security Fund Fire Prevention & Safety Fund Other - (Describe & Itemize) TAX ANTICIPATION NOTES (TAN) OTHER SHORT-TERM BORROWING SCHEDULE OF SHORT-TERM DEBT Description (Enter Whole Dollars) CORPORATE PERSONAL PROPERTY REPLACEMENT TAX ANTICIPATION NOTES (CPPRT) Total CPPRT Notes TAX ANTICIPATION WARRANTS (TAW) Total TAWs Educational Fund Operations & Maintenance Fund Fire Prevention & Safety Fund Other - (Describe & Itemize) Total TANs TEACHERS'/EMPLOYEES' ORDERS (T/EO) Total T/EOs (Educational, Operations & Maintenance, & Transportation Funds) GENERAL STATE-AID ANTICIPATION CERTIFICATES (GSAAC) Total GSAACs (All Funds) Total Other Short-Term Borrowing (Describe & Itemize) SCHEDULE OF LONG-TERM DEBT Identification or Name of Issue Date of Issue (mm/dd/yy) Amount of Original Issue Type of Issue * Outstanding Beginning July 1, 217 Issued July 1, 217 thru June 3, 218 Any differences (Described and Itemize) Retired July 1, 217 thru June 3, 218 Outstanding Ending June 3, 218 Amount to be Provided for Payment on Long-Term Debt Capital Appreciation School Construction 6/1/ 6,472, , , , ,761 Copier Capital Lease 9/25/15 112, ,76 22,428 52,332 52,332 Chromebook Capital Lease 4/2/17 43,6 7 43,6 14,923 28,677 28,677 Additional Copier Capital Lease 12/8/17 9, , ,688 8,688 6,638, ,311 53, , ,665 43,458 Each type of debt issued must be identified separately with the amount: 1. Working Cash Fund Bonds 4. Fire Prevent, Safety, Environmental and Energy Bonds 7. Other Capital Lease 2. Funding Bonds 5. Tort Judgment Bonds 8. Other 3. Refunding Bonds 6. Building Bonds 9. Other Print Date: 11/8/218 Pearl City AFR 18.xlsm

27 Page 25 Schedule of Restricted Local Tax Levies and Selected Revenues Sources Schedule of Tort Immunity Expenditures Page A B C D E F G H I J K SCHEDULE OF RESTRICTED LOCAL TAX LEVIES AND SELECTED REVENUE SOURCES Cash Basis Fund Balance as of July 1, 217 RECEIPTS: Ad Valorem Taxes Received by District Account No Tort Immunity a Special Education 1, 2, 4 or ,829 Area Vocational Construction School Facility Occupation Taxes b 3,56 Driver Education Earnings on Investments 1, 2, 4, 5 or 6-15 Drivers' Education Fees ,75 School Facility Occupation Tax Proceeds 3 or Driver Education 1 or ,966 Other Receipts (Describe & Itemize) Sale of Bonds Total Receipts DISBURSEMENTS: Instruction Facilities Acquisition & Construction Services Tort Immunity Services DEBT SERVICE Debt Services - Interest on Long-Term Debt Total Debt Services Total Disbursements -- 1, 2, 4 or ,829 16,41 1 or ,829 16,41 2 or , 2, ,829 16,41 3,56 Reserved Fund Balance 714 3,56 Unreserved Fund Balance 73 SCHEDULE OF TORT IMMUNITY EXPENDITURES a Yes No Has the entity established an insurance reserve pursuant to 745 ILCS 1/9-13? If yes, list in the aggregate the following: Total Claims Payments: Total Reserve Remaining: In the following categories, list all other Tort Immunity expenditures not included in line 3 above. Enter total dollar amount for each category. Expenditures: Workers' Compensation Act and/or Workers' Occupational Disease Act Unemployment Insurance Act Insurance (Regular or Self-Insurance) Risk Management and Claims Service Judgments/Settlements Educational, Inspectional, Supervisory Services Related to Loss Prevention and/or Reduction Reciprocal Insurance Payments (Insurance Code 72, 76, and 81) Legal Services Principal and Interest on Tort Bonds a Schedules for Tort Immunity are to be completed only if expenditures have been reported in any fund other than the Tort Immunity Fund (8) during the fiscal year as a result of existing (restricted) fund balances in those other funds that are being spent down. Cell G6 above should include interest earnings only from these restricted tort immunity monies and only if reported in a fund other than Tort Immunity Fund (8). b 55 ILCS 5/ Description (Enter Whole Dollars) Debt Services - Principal Payments on Long-Term Debt (Lease/Purchase Principal Retired) Debt Services Other (Describe & Itemize) Other Disbursements (Describe & Itemize) Ending Cash Basis Fund Balance as of June 3, 218 Print Date: 11/8/218 Pearl City AFR 18.xlsm

28 Page 26 Page A B C D E F G H I J K L SCHEDULE OF CAPITAL OUTLAY AND DEPRECIATION Description of Assets (Enter Whole Dollars) Acct # Cost Beginning July 1, 217 Add: Additions July 1, 217 thru June 3, 218 Less: Deletions July 1, 217 thru June Cost Ending June 3, 218 Life In Years Accumulated Depreciation Beginning July 1, 217 Add: Depreciation Allowable July 1, 217 thru June 3, 218 Less: Depreciation Deletions July 1, 217 thru June 3, 218 Accumulated Depreciation Ending June 3, 218 Ending Balance Undepreciated June 3, 218 Works of Art & Historical Treasures 21 Land 22 Non-Depreciable Land ,968 17,968 17,968 Depreciable Land Buildings 23 Permanent Buildings ,143,29 4,645 11,147, ,437,62 25,155 4,642,775 6,55,16 Temporary Buildings Improvements Other than Buildings (Infrastructure) 24 Capitalized Equipment 25 31,414 31, ,571 15,67 217,638 92,776 1 Yr Schedule , ,476 87,512 91, ,634 79,59 87, , ,49 5 Yr Schedule 252 1,546 29, , ,867 14,874 83,741 46,182 3 Yr Schedule Construction in Progress Total Capital Assets 2 12,49, ,498 87,512 12,57,361 5,131, ,686 87,512 5,358,866 7,148,495 Non-Capitalized Equipment 7 1 Allowable Depreciation 314,686 Print Date: 11/8/218 Pearl City AFR 18.xlsm

29 Page 27 Page A B C D E F G ESTIMATED OPERATING EXPENSE PER PUPIL (OEPP)/PER CAPITA TUITION CHARGE (PCTC) COMPUTATIONS ( ) This schedule is completed for school districts only. Fund Sheet, Row ACCOUNT NO - TITLE Amount OPERATING EXPENSE PER PUPIL EXPENDITURES: ED Expenditures 15-22, L114 Total Expenditures $ 4,296,677 O&M Expenditures 15-22, L151 Total Expenditures 47,115 DS Expenditures 15-22, L174 Total Expenditures 634,91 TR Expenditures 15-22, L21 Total Expenditures 276,641 MR/SS Expenditures 15-22, L295 Total Expenditures 171,559 TORT Expenditures 15-22, L342 Total Expenditures 111,43 Total Expenditures $ 5,897,126 LESS RECEIPTS/REVENUES OR DISBURSEMENTS/EXPENDITURES NOT APPLICABLE TO THE REGULAR K-12 PROGRAM: TR Revenues 9-14, L43, Col F 1412 Regular - Transp Fees from Other Districts (In State) $ TR Revenues 9-14, L47, Col F 1421 Summer Sch - Transp. Fees from Pupils or Parents (In State) TR Revenues 9-14, L48, Col F 1422 Summer Sch - Transp. Fees from Other Districts (In State) TR Revenues 9-14, L49, Col F 1423 Summer Sch - Transp. Fees from Other Sources (In State) TR Revenues 9-14, L5 Col F 1424 Summer Sch - Transp. Fees from Other Sources (Out of State) TR Revenues 9-14, L52, Col F 1432 CTE - Transp Fees from Other Districts (In State) TR Revenues 9-14, L56, Col F 1442 Special Ed - Transp Fees from Other Districts (In State) TR Revenues 9-14, L59, Col F 1451 Adult - Transp Fees from Pupils or Parents (In State) TR Revenues 9-14, L6, Col F 1452 Adult - Transp Fees from Other Districts (In State) TR Revenues 9-14, L61, Col F 1453 Adult - Transp Fees from Other Sources (In State) TR Revenues 9-14, L62, Col F 1454 Adult - Transp Fees from Other Sources (Out of State) O&M-TR Revenues 9-14, L148, Col D & F 341 Adult Ed (from ICCB) O&M-TR Revenues 9-14, L149, Col D & F 3499 Adult Ed - Other (Describe & Itemize) O&M-TR Revenues 9-14, L218, Col D,F 46 Fed - Spec Education - Preschool Flow-Through O&M-TR Revenues 9-14, L219, Col D,F 465 Fed - Spec Education - Preschool Discretionary O&M Revenues 9-14, L229, Col D 481 Federal - Adult Education ED Expenditures 15-22, L7, Col K - (G+I) 1125 Pre-K Programs 4,1 ED Expenditures 15-22, L9, Col K - (G+I) 1225 Special Education Programs Pre-K 26,876 ED Expenditures 15-22, L11, Col K - (G+I) 1275 Remedial and Supplemental Programs Pre-K ED Expenditures 15-22, L12, Col K - (G+I) 13 Adult/Continuing Education Programs ED Expenditures 15-22, L15, Col K - (G+I) 16 Summer School Programs 2,25 ED Expenditures 15-22, L2, Col K 191 Pre-K Programs - Private Tuition ED Expenditures 15-22, L21, Col K 1911 Regular K-12 Programs - Private Tuition 56,115 ED Expenditures 15-22, L22, Col K 1912 Special Education Programs K-12 - Private Tuition ED Expenditures 15-22, L23, Col K 1913 Special Education Programs Pre-K - Tuition ED Expenditures 15-22, L24, Col K 1914 Remedial/Supplemental Programs K-12 - Private Tuition ED Expenditures 15-22, L25, Col K 1915 Remedial/Supplemental Programs Pre-K - Private Tuition ED Expenditures 15-22, L26, Col K 1916 Adult/Continuing Education Programs - Private Tuition ED Expenditures 15-22, L27, Col K 1917 CTE Programs - Private Tuition ED Expenditures 15-22, L28, Col K 1918 Interscholastic Programs - Private Tuition ED Expenditures 15-22, L29, Col K 1919 Summer School Programs - Private Tuition ED Expenditures 15-22, L3, Col K 192 Gifted Programs - Private Tuition ED Expenditures 15-22, L31, Col K 1921 Bilingual Programs - Private Tuition ED Expenditures 15-22, L32, Col K 1922 Truants Alternative/Optional Ed Progms - Private Tuition 2, ED Expenditures 15-22, L75, Col K - (G+I) 3 Community Services 115,236 ED Expenditures 15-22, L12, Col K 4 Total Payments to Other Govt Units 245,652 ED Expenditures 15-22, L114, Col G - Capital Outlay 93,591 ED Expenditures 15-22, L114, Col I - Non-Capitalized Equipment O&M Expenditures 15-22, L13, Col K - (G+I) 3 Community Services O&M Expenditures 15-22, L139, Col K 4 Total Payments to Other Govt Units O&M Expenditures 15-22, L151, Col G - Capital Outlay 62,53 O&M Expenditures 15-22, L151, Col I - Non-Capitalized Equipment DS Expenditures 15-22, L16, Col K 4 Payments to Other Dist & Govt Units DS Expenditures 15-22, L17, Col K 53 Debt Service - Payments of Principal on Long-Term Debt 231,899 TR Expenditures 15-22, L185, Col K - (G+I) 3 Community Services TR Expenditures 15-22, L196, Col K 4 Total Payments to Other Govt Units TR Expenditures 15-22, L26, Col K 53 Debt Service - Payments of Principal on Long-Term Debt TR Expenditures 15-22, L21, Col G - Capital Outlay 22,645 TR Expenditures 15-22, L21, Col I - Non-Capitalized Equipment MR/SS Expenditures 15-22, L216, Col K 1125 Pre-K Programs 2,633 MR/SS Expenditures 15-22, L218, Col K 1225 Special Education Programs - Pre-K 257 MR/SS Expenditures 15-22, L22, Col K 1275 Remedial and Supplemental Programs - Pre-K MR/SS Expenditures 15-22, L221, Col K 13 Adult/Continuing Education Programs MR/SS Expenditures 15-22, L224, Col K 16 Summer School Programs 29 MR/SS Expenditures 15-22, L28, Col K 3 Community Services 19,5 MR/SS Expenditures 15-22, L285, Col K 4 Total Payments to Other Govt Units Tort Expenditures 15-22, L334, Col K 4 Total Payments to Other Govt Units Total Deductions for OEPP Computation (Sum of Lines 18-74) $ 92,719 Total Operating Expenses Regular K-12 (Line 14 minus Line 76) 4,976,47 9 Month ADA from District Average Daily Attendance/Prior General State Aid Inquiry Estimated OEPP (Line 77 divided by Line 78) $ 12, Print Date: 11/8/218 Pearl City AFR 18.xlsm

30 Page 28 Page A B C D E F G ESTIMATED OPERATING EXPENSE PER PUPIL (OEPP)/PER CAPITA TUITION CHARGE (PCTC) COMPUTATIONS ( ) This schedule is completed for school districts only. Fund Sheet, Row ACCOUNT NO - TITLE Amount PER CAPITA TUITION CHARGE LESS OFFSETTING RECEIPTS/REVENUES: TR Revenues 9-14, L42, Col F 1411 Regular -Transp Fees from Pupils or Parents (In State) $ TR Revenues 9-14, L44, Col F 1413 Regular - Transp Fees from Other Sources (In State) 3,249 TR Revenues 9-14, L45, Col F 1415 Regular - Transp Fees from Co-curricular Activities (In State) TR Revenues 9-14, L46, Col F 1416 Regular Transp Fees from Other Sources (Out of State) TR Revenues 9-14, L51, Col F 1431 CTE - Transp Fees from Pupils or Parents (In State) TR Revenues 9-14, L53, Col F 1433 CTE - Transp Fees from Other Sources (In State) TR Revenues 9-14, L54, Col F 1434 CTE - Transp Fees from Other Sources (Out of State) TR Revenues 9-14, L55, Col F 1441 Special Ed - Transp Fees from Pupils or Parents (In State) TR Revenues 9-14, L57, Col F 1443 Special Ed - Transp Fees from Other Sources (In State) TR Revenues 9-14, L58, Col F 1444 Special Ed - Transp Fees from Other Sources (Out of State) ED Revenues 9-14, L75, Col C 16 Total Food Service 127,61 ED-O&M Revenues 9-14, L82, Col C,D 17 Total District/School Activity Income 5,122 ED Revenues 9-14, L84, Col C 1811 Rentals - Regular Textbooks 17,216 ED Revenues 9-14, L87, Col C 1819 Rentals - Other (Describe & Itemize) 1 ED Revenues 9-14, L88, Col C 1821 Sales - Regular Textbooks ED Revenues 9-14, L91, Col C 1829 Sales - Other (Describe & Itemize) ED Revenues 9-14, L92, Col C 189 Other (Describe & Itemize) 11 ED-O&M 12 ED-O&M-TR 13 ED-O&M-DS-TR-MR/SS 14 ED 15 ED-O&M-TR 16 ED-O&M-MR/SS 17 ED-MR/SS 18 ED 19 ED-O&M-MR/SS 11 ED-O&M 111 ED-O&M-TR-MR/SS 112 ED 113 ED-O&M-TR-MR/SS 114 ED-TR-MR/SS 115 ED-TR-MR/SS 116 ED-TR-MR/SS 117 ED-TR-MR/SS 118 ED-TR-MR/SS 119 ED-O&M-TR-MR/SS 12 ED-O&M-TR-MR/SS 121 ED-O&M-DS-TR-MR/SS 122 ED-O&M-DS-TR-MR/SS 123 ED-TR 124 O&M 125 ED-O&M-DS-TR-MR/SS-Tort 126 ED 127 ED-O&M-TR-MR/SS 128 ED-O&M-TR-MR/SS 129 ED-MR/SS 13 ED-O&M-TR-MR/SS 131 ED-O&M-TR-MR/SS 132 ED-O&M-TR-MR/SS 133 ED-O&M-TR-MR/SS 134 ED-O&M-TR-MR/SS 135 ED-O&M-TR-MR/SS 136 ED-O&M-MR/SS 161 ED-O&M-DS-TR-MR/SS-Tort 162 ED 163 ED-O&M-DS-TR-MR/SS-Tort 164 ED,O&M,MR/SS 165 ED-TR-MR/SS 166 ED-TR-MR/SS 167 ED-TR-MR/SS 168 ED-O&M-TR-MR/SS 169 ED-O&M-TR-MR/SS 17 ED-O&M-TR-MR/SS 171 ED-O&M-TR-MR/SS 172 ED-O&M-TR-MR/SS 173 ED-O&M-TR-MR/SS 174 ED-O&M-TR-MR/SS 175 ED-TR-MR/SS 176 ED-MR/SS 177 Revenues 9-14, L95, Col C,D Revenues 9-14, L98, Col C,D,F Revenues 9-14, L14, Col C,D,E,F,G Revenues 9-14, L16, Col C Revenues 9-14, L131, Col C,D,F Revenues 9-14, L14, Col C,D,G Revenues 9-14, L144, Col C,G Revenues 9-14, L145, Col C Revenues 9-14, L146, Col C,D,G Revenues 9-14, L147,Col C,D Revenues 9-14, L154, Col C,D,F,G Revenues 9-14, L155, Col C Revenues 9-14, L156, Col C,D,F,G Revenues 9-14, L157, Col C,F,G Revenues 9-14, L159, Col C,F,G Revenues 9-14, L16, Col C,F,G Revenues 9-14, L161, Col C,F,G Revenues 9-14, L162, Col C,F,G Revenues 9-14, L163, Col C,D,F,G Revenues 9-14, L164, Col C,D,F,G Revenues 9-14, L165, Col C,D,E,F,G Revenues 9-14, L166, Col C,D,E,F,G Revenues 9-14, L167, Col C,F Revenues 9-14, L17, Col D Revenues 9-14, L171, Col C-G,J Revenues 9-14, L18, Col C Revenues 9-14, L184, Col C,D,F,G Revenues 9-14, L191, Col C,D,F,G Revenues 9-14, L21, Col C,G Revenues 9-14, L211, Col C,D,F,G Revenues 9-14, L216, Col C,D,F,G Revenues 9-14, L22, Col C,D,F,G Revenues 9-14, L221, Col C,D,F,G Revenues 9-14, L222, Col C,D,F,G Revenues 9-14, L223, Col C,D,F,G Revenues 9-14, L228, Col C,D,G Revenue Adjustments (C231 thru J258) Revenues 9-14, L26, Col C Revenues 9-14, L261, Col C-G,J Revenues 9-14, L262, Col C,D,G Revenues 9-14, L263, Col C,F,G Revenues 9-14, L264, Col C,F,G Revenues 9-14, L265, Col C,F,G Revenues 9-14, L266, Col C,D,F,G Revenues 9-14, L267, Col C,D,F,G Revenues 9-14, L268, Col C,D,F,G Revenues 9-14, L269, Col C,D,F,G Revenues 9-14, L27, Col C,D,F,G Revenues 9-14, L271, Col C,D,F,G Revenues 9-14, L272, Col C,D,F,G Revenues (Part of EBF Payment) Revenues (Part of EBF Payment) Rentals Services Provided Other Districts Payment from Other Districts Other Local Fees (Describe & Itemize) Total Special Education Total Career and Technical Education Total Bilingual Ed State Free Lunch & Breakfast School Breakfast Initiative Driver Education Total Transportation Learning Improvement - Change Grants Scientific Literacy Truant Alternative/Optional Education Reading Improvement Block Grant Reading Improvement Block Grant - Reading Recovery Continued Reading Improvement Block Grant Continued Reading Improvement Block Grant (2% Set Aside) Chicago General Education Block Grant Chicago Educational Services Block Grant School Safety & Educational Improvement Block Grant Technology - Technology for Success State Charter Schools School Infrastructure - Maintenance Projects Other Restricted Revenue from State Sources Head Start (Subtract) Total Restricted Grants-In-Aid Received Directly from Federal Govt Total Title V Total Food Service Total Title I Total Title IV Fed - Spec Education - IDEA - Flow Through Fed - Spec Education - IDEA - Room & Board Fed - Spec Education - IDEA - Discretionary Fed - Spec Education - IDEA - Other (Describe & Itemize) Total CTE - Perkins Total ARRA Program Adjustments Race to the Top Race to the Top-Preschool Expansion Grant Advanced Placement Fee/International Baccalaureate Title III - Immigrant Education Program (IEP) Title III - Language Inst Program - Limited Eng (LIPLEP) Learn & Serve America McKinney Education for Homeless Children Title II - Eisenhower Professional Development Formula Title II - Teacher Quality Federal Charter Schools Medicaid Matching Funds - Administrative Outreach Medicaid Matching Funds - Fee-for-Service Program Other Restricted Revenue from Federal Sources (Describe & Itemize) Special Education Contributions from EBF Funds ** English Learning (Bilingual) Contributions from EBF Funds *** 94,367 8, , ,998 1,5 39,669 83,96 67,59 118,742 49,122 4,268 26, Total Deductions for PCTC Computation Line 84 through Line 174 Net Operating Expense for Tuition Computation (Line 77 minus Line 176) Total Depreciation Allowance (from page 26, Line 18, Col I) Total Allowance for PCTC Computation (Line 177 plus Line 178) 9 Month ADA from District Average Daily Attendance/Prior General State Aid Inquiry $ 864,238 4,112, ,686 4,426, Total Estimated PCTC (Line 179 divided by Line 18) * $ 1, * The total OEPP/PCTC may change based on the data provided. The final amounts will be calculated by ISBE 186 ** Go to the link below: Under "What's New!" select "FY 218 Special Education Funding Allocation Calculation Details." Open excel file and use the amount in column W for the selected district. 187 *** Follow the same instructions as above except under What's New, select "FY 218 English Learner Education Funding Allocation Calculation Details", and use column U for the selected district Evidence Based Funding Link: Print Date: 11/8/218 Pearl City AFR 18.xlsm

31 Instructions: Illinois State Board of Education School Business Services Division 3. In Column (C) enter the name of the Company that is listed on the contract. 4. In column (D) enter the total amount paid in the AFR for the contract. The amount must be equal to the amount reported in the AFR's "Expenditures 15-22" tab. 5. Column (E) and (F) are calculated automatically based on the information provided in Columns (A through D). 6. The amount in column (E) is the amount allowed on each contract in the Indirect Cost Rate calcualation. The amount in column (F) is the amount that will be deducted from the base in the indirect cost rate (page 3) for Program Year Do not include contracts for Capital Outlay (5) or Non-Capitalized Equipment (7) on this form, they are excluded from the Indirect Cost Rate calucation. Fund-Function-Object Name Where the Expenditure was Recorded (Column A) Current Year Payment on Contracts For Indirect Cost Rate Computation This schedule is to calculate the amount allowed on contracts obligated by the school district for the Indirect Cost Rate calculation. The greatest amount allowed in the indirect cost calculation is $25, for each contract. The contracts should be only for purchase services and not for salary contracts. 1. In column (A) enter the name of the Fund-Function-Object of the account where the payment was made on each contract in the current year. 2. In column (B) enter the number of the Fund-Functon-Object (use this format [--]) of the account where the payment was made on each contract for the current year. Use only the functions listed on page 3. Fund- Function- Object Number (Column B) Contracted Company Name (Column C) Current Year Amount Paid on Contract (Column D) Contract Amount Applied to the Indirect Cost Rate Base (Column E) Contract Amount deducted from the Indirect Cost Rate Base (Column F) Enter as shown here: ED-Instruction-Other Company Name 5, 25, 475, ED-Support Services Pupils-Purchased Service Jennifer Petta 61,248 25, 36,248 TR-Pupil Transportation Services-Purchased Service Santander Leasing LLC 85,652 25, 6,652

32 Fund-Function-Object Name Where the Expenditure was Recorded (Column A) Fund- Function- Object Number (Column B) Contracted Company Name (Column C) Current Year Amount Paid on Contract (Column D) Contract Amount Applied Contract Amount deducted to the Indirect Cost Rate from the Indirect Cost Rate Base Base (Column E) (Column F)

33 Fund-Function-Object Name Where the Expenditure was Recorded (Column A) Fund- Function- Object Number (Column B) Contracted Company Name (Column C) Current Year Amount Paid on Contract (Column D) Contract Amount Applied Contract Amount deducted to the Indirect Cost Rate from the Indirect Cost Rate Base Base (Column E) (Column F)

34 Fund-Function-Object Name Where the Expenditure was Recorded (Column A) Fund- Function- Object Number (Column B) Contracted Company Name (Column C) Current Year Amount Paid on Contract (Column D) Contract Amount Applied Contract Amount deducted to the Indirect Cost Rate from the Indirect Cost Rate Base Base (Column E) (Column F) Total 146,9 5, 96,9

35 Page 3 ESTIMATED INDIRECT COST DATA Page A B C D E F G H ESTIMATED INDIRECT COST RATE DATA SECTION I Financial Data To Assist Indirect Cost Rate Determination (Source document for the computation of the Indirect Cost Rate is found in the "Expenditures 15-22" tab.) Support Services - Direct Costs (1-2) and (5-2) Direction of Business Support Services (1-251) and (5-251) Fiscal Services (1-252) and (5-252) Operation and Maintenance of Plant Services (1, 2, and 5-254) Food Services (1-256) Must be less than (P16, Col E-F, L63) 83,96 Internal Services (1-257) and (5-257) Staff Services (1-264) and (5-264) Data Processing Services (1-266) and (5-266) SECTION II Estimated Indirect Cost Rate for Federal Programs Restricted Program Unrestricted Program Function Indirect Costs Direct Costs Indirect Costs Direct Costs Instruction 1 2,92,21 2,92,21 Support Services: Pupil 21 21,93 21,93 Instructional Staff 22 52,953 52,953 General Admin , ,934 School Admin , ,868 Business: Direction of Business Spt. Srv. 251 Fiscal Services ,227 67,227 Oper. & Maint. Plant Services , ,465 Pupil Transportation ,99 272,99 Food Services ,684 77,684 Internal Services 257 Central: Direction of Central Spt. Srv. 261 Plan, Rsrch, Dvlp, Eval. Srv. 262 Information Services 263 Staff Services 264 Data Processing Services 266 Other: Community Services 3 134, ,241 Contracts Paid in CY over the allowed amount for ICR calculation (from page 29) (96,9) (96,9) Total 67,227 4,591, ,692 4,223,929 Print Date: 11/8/218 Pearl City AFR 18.xlsm ALL OBJECTS EXCLUDE CAPITAL OUTLAY. With the exception of line 11, enter the disbursements/expenditures included within the following functions charged directly to and reimbursed from federal grant programs. Also, include all amounts paid to or for other employees within each function that work with specific federal grant programs in the same capacity as those charged to and reimbursed from the same federal grant programs. For example, if a district received funding for a Title I clerk, all other salaries for Title I clerks performing like duties in that function must be included. Include any benefits and/or purchased services paid on or to persons whose salaries are classified as direct costs in the function listed. Value of Commodities Received for Fiscal Year 218 (Include the value of commodities when determining if a Single Audit is required). 18,618 Restricted Rate Unrestricted Rate Total Indirect Costs: 67,227 Total Indirect costs: 434,692 Total Direct Costs: 4,591,394 Total Direct Costs: 4,223,929 = 1.46% = 1.29%

36 A B C D E F REPORT ON SHARED SERVICES OR OUTSOURCING School Code, Section (Public Act ) Fiscal Year Ending June 3, 218 Complete the following for attempts to improve fiscal efficiency through shared services or outsourcing in the prior, current and next fiscal years. PEARL CITY COMMUNITY UNIT Check box if this schedule is not applicable Indicate with an (X) If Deficit Reduction Plan Is Required in the Budget Service or Function ( Check all that apply ) Prior Fiscal Year Current Fiscal Year Next Fiscal Year Name of the Local Education Agency (LEA) Participating in the Joint Agreement, Cooperative or Shared Service. Barriers to Implementation (Limit text to 2 characters, for additional space use line 33 and 38) Curriculum Planning Custodial Services Educational Shared Programs Employee Benefits Energy Purchasing x x x APPI - Electricity, ICG - Natural Gas Cooperative Food Services Grant Writing Grounds Maintenance Services Insurance Investment Pools Legal Services Maintenance Services Personnel Recruitment Professional Development Shared Personnel Special Education Cooperatives STEM (science, technology, engineering and math) Program Offerings x x x Northwest Special Education Cooperative Supply & Equipment Purchasing Technology Services x x x ROE #8 - Shared paper purchases Transportation Vocational Education Cooperatives x x x CareerTEC All Other Joint/Cooperative Agreements Other Additional space for Column (D) - Barriers to Implementation: Additional space for Column (E) - Name of LEA : Page 31

37 Page 32 Page 32 ILLINOIS STATE BOARD OF EDUCATION School Business Services Division (N-33) 1 North First Street Springfield, IL LIMITATION OF ADMINISTRATIVE COSTS WORKSHEET School District Name: PEARL CITY COMMUNITY UNIT SCHOOL DIST (Section of the School Code) RCDT Number: Description Funct. No. Actual Expenditures, Fiscal Year 218 Budgeted Expenditures, Fiscal Year 219 (1) (2) (1) (2) Educational Fund Operations & Maintenance Fund Total Educational Fund Operations & Maintenance Fund 1. Executive Administration Services , ,758 83,25 83,25 2. Special Area Administration Services Other Support Services - School Administration Direction of Business Support Services Internal Services Direction of Central Support Services Deduct - Early Retirement or other pension obligations required by state law and included above. 8. Totals 198, ,758 83,25 83,25 9. Percent Increase (Decrease) for FY219 (Budgeted) over FY218 (Actual) -58% CERTIFICATION I certify that the amounts shown above as "Actual Expenditures, Fiscal Year 218" agree with the amounts on the district's Annual Financial Report for Fiscal Year 218. I also certify that the amounts shown above as "Budgeted Expenditures, Fiscal Year 219" agree with the amounts on the budget adopted by the Board of Education. Total Signature of Superintendent Date Contact Name (for questions) Contact Telephone Number If line 9 is greater than 5% please check one box below. The District is ranked by ISBE in the lowest 25th percentile of like districts in administrative expenditures per student (4th quartile) and will waive the limitation by board action, subsequent to a public hearing. Waiver resolution must be adopted no later than June 3. The district is unable to waive the limitation by board action and will be requesting a waiver from the General Assembly pursuant to the procedures in Chapter 15 ILCS 5/2-3.25g. Waiver applications must be postmarked by August 15, 218 to ensure inclusion in the Fall 218 report or postmarked by January 15, 219 to ensure inclusion in the Spring 219 report. Information on the waiver process can be found at The district will amend their budget to become in compliance with the limitation. Budget amendments must be adopted no later than June 3.

38 Page 33 Page 33 This page is provided for detailed itemizations as requested within the body of the report. Type Below. Page Line Fund Account # Description Amount Special Milk Sales $ 4, Miscellaneous Rebates $ Book/Student Fees $ Erate 148,876 Misc Receipts 481 Reimbursements for Extracurricular Activities 5,937 Copy and Postage Charges 257 $ 155, Insurance Payments 26,81 Janitorial Charges 34 $ 27, Bus Reimbursement $ 1, State Library Grant $ 1, Federal REAP Grant $ 39,669 Audit Check: Error message #8 is a result of new capital leases issued in the amount of $53,253. PEARL CITY COMMUNITY UNIT SCHOOL DISTRICT NO

39 Page 34 Page 34 Reference Pages. 1 Do not enter negative numbers. Reports with negative numbers will be returned for correction. 2 GASB Statement No. 24; Accounting and Financial Reporting for Certain Grants and Other Financial Assistance. The "On Behalf of" Payments should only be reflected on this page. 3 Equals Line 8 minus Line 17 4 May require notification to the county clerk to abate an equal amount from taxes next extended. Refer to Section for the applicable provisions and other "limited" transfer authority to O&M through June 3, Requires notification to the county clerk to abate an equal amount from taxes next extended. See Section Use of proceeds from the sale of school sites buildings, or other real estate is limited. See Sections 5-22 and of the School Code. 7 Include revenue accounts 111 through 1115, 1117, 1118 & 112. Include taxes for bonds sold that are in addition to those identified separately. 8 Educational Fund (1) - Computer Technology only. 9 Corporate personal property replacement tax revenue must be first applied to the Municipal Retirement/Social Security Fund to replace tax revenue lost due to the abolition of the corporate personal property tax (3 ILCS 115/12). This provision does not apply to taxes levied for Medicare-Only purposes. 1 Include only tuition payments made to private facilities. See Function 42 or 44 for public facility disbursements/expenditures. 11 Payment towards the retirement of lease/purchase agreements or bonded/other indebtedness (principal only) otherwise reported within the fund e.g. alternate revenue bonds( Describe & Itemize). 12 Only abolishment of Working Cash Fund must transfer its funds directly to the Educational Fund upon adoption of a resolution and at the close of the current school Year (see 15 ILCS 5/2-8 for further explanation) Only abatement of working cash fund can transfer its funds to any fund in most need of money (see 15 ILCS 5/2-1 for further explanation)

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41 BENNING GROUP, LLC CERTIFIED PUBLIC ACCOUNTANTS Board of Education Pearl City Community Unit School District No. 2 Stephenson County, Illinois Report on the Financial Statements Independent Auditor s Report on Annual Financial Report We have audited the accompanying financial statements of Pearl City Community Unit School District No. 2, as of and for the fiscal year ended June 3, 218, and the related notes to the financial statements, which collectively comprise the District s financial statements as listed in the table of contents of this Annual Financial Report form. Management s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with the financial reporting practices prescribed or permitted by the Illinois State Board of Education. Management is also responsible for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor s Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. 5 W. Douglas Street, Suite Weaver Road, Suite th Street Freeport, Illinois 6132 Rockford, Illinois Monroe, Wisconsin (815) (815) (68) Fax (815) Fax (815) Fax (68)

42 We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Basis for Adverse Opinion on U.S. Generally Accepted Accounting Principles As described more fully in Note 1, the financial statements are prepared by Pearl City Community Unit School District No. 2 in accordance with the financial reporting practices prescribed or permitted by the Illinois State Board of Education, which is a basis of accounting other than accounting principles generally accepted in the United States of America, to comply with the requirements of the Illinois State Board of Education. The effects on the financial statements of the variances between the regulatory basis of accounting described in Note 1 and accounting principles generally accepted in the United States of America, although not reasonably determinable, are presumed to be material. Adverse Opinion on U.S. Generally Accepted Accounting Principles In our opinion, because of the significance of the matter discussed in the Basis for Adverse Opinion on U.S. Generally Accepted Accounting Principles paragraph, the financial statements referred to in the first paragraph do not present fairly, in accordance with accounting principles generally accepted in the United States of America, the financial position of Pearl City Community Unit School District No. 2, as of June 3, 218, or the changes in its financial position for the year then ended. Unmodified Opinion on Regulatory Basis of Accounting In our opinion, the financial statements referred to in the first paragraph present fairly, in all material respects, the assets and liabilities arising from cash transactions of Pearl City Community Unit School District No. 2 as of June 3, 218, and the revenues it received and expenditures it paid, and budgetary results for the year then ended, in accordance with the financial reporting provisions of the Illinois State Board of Education as described in Note 1. Other Matters Supplemental Schedules and Other Information Our audit was conducted for the purpose of forming opinions on the financial statements taken as a whole. The information provided on pages 2 through 4, supplementary schedules on pages 23 through 25, statistical section on pages 26 through 3 and the itemization schedule on page 33, the Schedule of the Employer s Proportionate Share of Net Pension Liability and Schedule of Employer Contributions of the Teachers Retirement System of the State of Illinois, the Schedule of Changes in Net Pension Liability and Related Ratios and Schedule of Contributions of the Illinois Municipal Retirement Fund and Schedules for Trust and Agency Funds are presented for purposes of additional analysis and is not a required part of the financial statements of Pearl City Community Unit School District No. 2. Such information, except for the average daily attendance figure, included in the computation of operating expense per pupil on page 27 and per capita tuition charges on page 28, the Schedule of the Employer s Proportionate Share of Net Pension Liability and Schedule of Employer Contributions of the Teachers Retirement System of the State of Illinois, and the Schedule of Changes in Net Pension Liability and Related Ratios and Schedule of Contributions of the Illinois SR-1 2

43 Municipal Retirement Fund is the responsibility of management and has been derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the financial statements taken as a whole. The information on pages 27-3 is propagated from information in the audited financial statements, but we take no responsibility for the accuracy of those calculations. The Report on Shared Services or Outsourcing on page 31 contains unaudited information concerning prior, current and future year expenditures which was provided by the District. The Administrative Cost Worksheet on page 32 contains unaudited information concerning the fiscal year 219 budget which was provided by the District. The actual expenditure information on page 32 is fairly stated in all material respects in relation to the financial statements taken as a whole. The average daily attendance figure, included in the computation of operating expense per pupil on page 27 and per capita tuition charges on page 28, and the Schedule of the Employer s Proportionate Share of Net Pension Liability and Schedule of Employer Contributions of the Teachers Retirement System of the State of Illinois, and the Schedule of Changes in Net Pension Liability and Related Ratios and Schedule of Contributions of the Illinois Municipal Retirement Fund have not been subjected to the auditing procedures applied in the audit of the financial statements, and accordingly, we do not express an opinion or provide any assurance on them. The Table of Contents references a Federal Compliance Section on pages 37-46; however this District was not required to have a Single Audit and this section has not been completed. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated November 5, 218, on our consideration of Pearl City Community Unit School District No. 2 s internal control over financial reporting and our tests of its compliance with certain provision of laws, regulations, contracts and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of Pearl City Community Unit School District No. 2 s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering Pearl City Community Unit School District No. 2 s internal control over financial reporting and compliance. Freeport, Illinois November 5, 218 SR-1 3

44 BENNING GROUP, LLC CERTIFIED PUBLIC ACCOUNTANTS Independent Auditor s Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards Board of Education Pearl City Community Unit School District No. 2 Carroll County, Illinois We have audited, in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, the financial statements of Pearl City Community Unit School District No. 2 as of and for the year ended June 3, 218, and the related notes to the financial statements, which collectively comprise Pearl City Community Unit School District No. 2 s financial statements, and have issued our report thereon dated November 5, 218. Our opinion was adverse because the financial statements are not prepared in accordance with generally accepted accounting principles. However, the financial statements were found to be fairly stated, on the cash basis of accounting, which is a comprehensive basis of accounting other than generally accepted accounting principles, in accordance with regulatory reporting requirements established by the Illinois State Board of Education. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered Pearl City Community Unit School District No. 2 s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the District s internal control. Accordingly, we do not express an opinion on the effectiveness of the District s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the District s financial statements will not be prevented or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. 5 W. Douglas Street, Suite Weaver Road, Suite th Street Freeport, Illinois 6132 Rockford, Illinois Monroe, Wisconsin (815) (815) (68) Fax (815) Fax (815) Fax (68)

45 Compliance and Other Matters As part of obtaining reasonable assurance about whether Pearl City Community Unit School District No. 2 s financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance that are required to be reported under Government Auditing Standards. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the District s internal control and compliance. Accordingly, this communication is not suited for any other purpose. Freeport, Illinois November 5, 218 SR-2.2/BR-2.2 5

46 PEARL CITY COMMUNITY UNIT SCHOOL DISTRICT NO. 2 Notes to Financial Statements June 3, 218 (1) Summary of Significant Accounting Policies The District s accounting policies conform to the cash basis of accounting, as defined by the Illinois State Board of Education. (a) Principles Used to Determine the Scope of the Reporting Entity The District s reporting entity includes the District s governing board and all related organizations for which the District exercises oversight responsibility. The District has developed criteria to determine whether outside agencies with activities which benefit the citizens of the District, including joint agreements which serve pupils from numerous districts, should be included within its financial reporting entity. The criteria include, but are not limited to, whether the District exercises oversight responsibility (which includes financial interdependency, selection of governing authority, designation of management, ability to significantly influence operations, and accountability for fiscal matters), scope of public service, and special financing relationships. Joint agreements have been determined not to be part of the reporting entity after applying the manifesting of oversight, scope of public service and special financing relationships criteria, and, are therefore excluded from the accompanying financial statements because the District does not control the assets, operations or management of the joint agreements. In addition, the District is not aware of any entity which would exercise such oversight as to result in the District being considered a component unit of the entity. (b) Basis of Presentation Fund Accounting These financial statements comply with the regulatory basis of reporting as prescribed by the Illinois State Board of Education. The accounts of the District are organized on the basis of funds and account groups, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets and liabilities arising from cash transactions, fund balance, revenue received and expenditures paid. The District maintains individual funds required by the State of Illinois. These funds are presented on the regulatory basis as required for reports filed with the Illinois State Board of Education. District resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled. The following fund types and account groups are used by the District: 35

47 PEARL CITY COMMUNITY UNIT SCHOOL DISTRICT NO. 2 Notes to Financial Statements Governmental Funds Governmental funds are those through which most governmental functions of the District are financed. The acquisition, use and balances of the District s expendable financial resources and the related liabilities arising from cash transactions are accounted for through governmental funds. Educational Fund This fund is the general operating fund of the District. It is used to account for all financial resources except those required to be accounted for in another fund. Operations and Maintenance Fund This fund is also a general operating fund used to account for costs of maintaining school buildings. Debt Service Fund This fund is a debt retirement fund. Resources of this fund are used to retire principal and interest maturities of outstanding bond obligations and other long-term debt instruments. Transportation Fund This fund is a special revenue fund used to account for the costs of transporting pupils to and from school and school activities. Municipal Retirement/Social Security Fund This fund is a special revenue fund used to pay the District s share of municipal retirement benefits for covered employees. The District s share of Social Security and Medicare is also paid from this fund. Capital Projects Fund Proceeds of construction bond issues, the capital improvement tax levy, and if applicable, school facility occupation tax proceeds are accounted for in this fund. Working Cash Fund The resources of this fund are held by the District to be used for temporary interfund loans to any fund of the District for which taxes are levied. Tort Fund This fund is a special revenue fund used to account for tort immunity or tort judgment purposes. Fire Prevention and Safety Fund Proceeds of fire prevention and safety bond issues and tax levy are accounted for in this fund. Fiduciary Funds Fiduciary funds are used to account for assets held by the District in a trustee capacity or as an agent for individuals, private organizations, other governments or other funds. Agency Funds Agency funds include Student Activity Funds. Student Activity Funds are those that are owned, operated and managed generally for educational, recreational 36

48 PEARL CITY COMMUNITY UNIT SCHOOL DISTRICT NO. 2 Notes to Financial Statements and cultural purposes by the student body under the guidance and direction of adults or a staff member. Although the Board of Education has the ultimate responsibility for Student Activity Funds, they are not local education funds. Governmental Funds Measurement Focus The financial statements of all governmental funds focus on the measurement of spending or "financial flow" and the determination of changes in financial position rather than upon net income determination. This means that only current assets and current liabilities are generally included on their balance sheets. Their reported fund balance (net current assets) is considered a measure of "available spendable resources." Governmental fund operating statements present increases (cash receipts and other financing sources) and decreases (cash disbursements and other financing uses) in net current assets. Accordingly, they are said to present a summary of sources and uses of "available spendable resources" during a period. General Fixed Assets and General Long-Term Debt Account Groups The accounting and reporting treatment applied to the fixed assets and long-term liabilities associated with a fund are determined by its measurement focus. Fixed assets used in governmental fund type operations are accounted for in the General Fixed Assets Account Group, rather than in governmental funds. Long-term liabilities expected to be financed from governmental funds are accounted for in the General Long-Term Debt Account Group, not in the governmental funds. The two account groups are not "funds." They are concerned only with the measurement of financial position. They are not involved with measurement of results of operations. (c) Basis of Accounting Basis of accounting refers to when revenue received and expenditures paid are recognized in the accounts and how they are reported on the financial statements. The District maintains its accounting records for all funds and account groups on the cash basis of accounting under guidelines prescribed by the Illinois State Board of Education. Accordingly, revenue is recognized and recorded in the accounts when cash is received. In the same manner, expenditures are recognized and recorded upon the disbursement of cash. Assets of a fund are only recorded when cash is received or when a right to receive cash exists which arises from a previous cash transaction. Liabilities of a fund, similarly, result from previous cash transactions. Cash basis financial statements omit recognition of receivables and payables and other accrued and deferred items that do not arise from previous cash transactions. 37

49 PEARL CITY COMMUNITY UNIT SCHOOL DISTRICT NO. 2 Notes to Financial Statements Proceeds from sales of bonds are included as other financing sources in the appropriate fund on the date received. Related bond principal payable in the future is recorded at the same time in the General Long-Term Debt Account Group. (d) Budgets and Budgetary Accounting The budget for all Governmental Fund Types is prepared on the cash basis of accounting which is the same basis that is used in financial reporting. This allows for comparability between budget and actual amounts. This is an acceptable method in accordance with 15 ILCS 5/17-1. The budget was passed on September 2, 217 and amended on June 2, 218. The budget lapses at the end of each fiscal year. The District follows these procedures in establishing the budgetary data reflected in the financial statements. 1. The Superintendent submits to the Board of Education a proposed operating budget for the fiscal year commencing on July 1. The operating budget includes proposed expenditures and the means of financing them. 2. A public hearing is held as to such budget prior to final action. 3. Prior to October 1, the budget is legally adopted through passage of a resolution. 4. Formal budgetary integration is employed as a management control device during the year. 5. The Board of Education may make transfers between the various items in any fund not exceeding in the aggregate 1% of the total of such fund as set forth in the budget. 6. The Board of Education may amend the budget by the same procedures required of its original adoption. (e) Cash The District considers cash on hand, cash on deposit with banks and other institutions, certificates of deposit, money market accounts, and repurchase agreements to be cash for financial statement purposes. (f) Investments All investments are reported at fair value. The District has adopted a formal written investment policy. The institutions in which investments are made must be approved by the Board of Education. 38

50 PEARL CITY COMMUNITY UNIT SCHOOL DISTRICT NO. 2 Notes to Financial Statements (g) Commingled Accounts The District uses common bank accounts to hold the monies of more than one fund. Interest earned on these common accounts is credited to each participating fund based on its approximate share of the account prior to the payment of interest. (h) General Fixed Assets (2) Property Taxes General fixed assets with expected useful lives that exceed five years and cost more than $5, are recorded as expenditures paid in the Governmental or Activity Funds and capitalized at cost in the general fixed assets account group. All fixed assets are valued at historical cost or estimated historical cost if actual historical cost is not available. Donated general fixed assets are stated at estimated fair market value as of the date of acquisition. Depreciation accounting is not considered applicable (except to determine the per capita tuition charge). Depreciation is computed using the straight line method over estimated lives ranging from three to fifty years. Estimated lives are determined based on the policies prescribed by the Illinois State Board of Education. The District s property tax is levied each year on all taxable real property located in the District on or before the last Tuesday in December. The levy was passed by the board on December 2, 217. Property taxes attach as an enforceable lien on property as of January 1 and are payable in two installments on approximately June 1 and September 1. The District receives significant distributions of tax receipts during June, July, August, September, October, and November. Taxes recorded in these financial statements are from the 217, 216, and prior tax levies. 39

51 PEARL CITY COMMUNITY UNIT SCHOOL DISTRICT NO. 2 Notes to Financial Statements The following are the tax rate limits permitted by the Illinois Compiled Statutes and by local referendum and the actual rates levied per $1 of assessed valuation: Levy Year Levy Year - Limit Actual Limit Actual Educational As Needed Oper. & maint Debt service As Needed As Needed Transportation As Needed As Needed Municipal retirement As Needed As Needed Social security As Needed.2384 As Needed.2556 Working cash Tort immunity As Needed.2518 As Needed Special education Fire prevention and safety Leasing/technology (a) Tax Abatements The District and the City of Freeport/Stephenson County Enterprise Zone Committee entered into an agreement pursuant to the Illinois Enterprise Zone Act (2 ILCS 665/1) to expand an existing enterprise zone to include property owned by Thompson s Pearl Valley Eggs, Inc. Pursuant to the Illinois School Code (35 ILCS 2/18-165), the District agreed to abate property tax revenues resulting from an increase in assessed valuation attributable to building additions on the property. The District will abate its share of property taxes for a three year period. One hundred percent of the value of the improvements assessed will be abated for the first year, sixty-six percent for the second year, and thirty-three percent for the third year. During the fiscal year ended June 3, 218, the District abated $26,47 of property tax revenues. The District also agreed to abate property taxes for a six year period resulting from an increase in assessed valuation attributable to the construction of improvements and the renovation of existing improvements. The agreement was authorized on November 19, 214 and abates one hundred percent of the value of the improvements for the first four years following the assessment year in which the improvements are complete, sixty-six percent in the fifth year, and thirty-three percent in the sixth year. The improvements were completed and reflected in the 217 tax levy. The abatement of property tax revenues will begin during the fiscal year ending June 3,

52 PEARL CITY COMMUNITY UNIT SCHOOL DISTRICT NO. 2 Notes to Financial Statements (3) Cash Deposits and Investments The District is allowed to invest in securities as authorized by the Illinois Public Funds Investment Act - 3 ILCS 235/2 and 6; and the Illinois School Code - 15 ILCS 5/8-7. Cash and investments as of June 3, 218 are classified in the accompanying financial statements as follows: Statement of Assets and Liabilities Arising from Cash Transactions Cash $ 1,697,799 Investments - Total cash and investments $ 1,697,799 Cash and investments as of June 3, 218 consist of the following: Cash on hand $ - Deposits with financial institutions District 1,67,824 Agency 89,975 Investments District - Agency - Total cash and investments $ 1,697,799 Deposits custodial credit risk Custodial credit risk for deposits is the risk that, in the event of a depository financial institution failure, the District s deposits may not be returned to it. The District does not have a formal deposit policy for custodial credit risk. As of June 3, 218, $1,124,934 of the District s bank balance of $1,715,553 were exposed to custodial credit risk as follows: Uninsured and collateralized by securities held by the pledging financial institution $ 1,124,934 Investments The District had no investments at June 3,

53 PEARL CITY COMMUNITY UNIT SCHOOL DISTRICT NO. 2 Notes to Financial Statements (4) Changes in General Fixed Assets & Depreciation Under the regulatory basis of accounting, assets and depreciation are not recorded and therefore the financial statements do not reflect amounts below. Assets at Cost Balance Balance Life in 7/1/17 Additions Deletions 6/3/18 Years Land $ 17,968 $ - $ - $ 17,968 Buildings and improvements 11,143,29 4,645-11,147,935 5 Land improvements 31, ,414 2 Other equipment 832, ,476 87, ,925 1 Transportation equipment 1,546 29, ,923 5 Food service equipment 4, ,196 1 Total general fixed assets $ 12,49,375 $ 185,498 $ 87,512 $ 12,57,361 Accumulated Depreciation Undepreciated Balance Depreciation Balance Cost 7/1/17 for Year Deletions 6/3/18 6/3/18 Land $ - $ - $ - $ - $ 17,968 Buildings and improvements 4,437,62 25,155-4,642,775 6,55,16 Land improvements 22,571 15,67-217,638 92,776 Other equipment 419,642 79,171 87, ,31 485,624 Transportation equipment 68,867 14,874-83,741 46,182 Food service equipment 2, , Total general fixed assets $ 5,131,692 $ 314,686 $ 87,512 $ 5,358,866 $ 7,148,495 42

54 PEARL CITY COMMUNITY UNIT SCHOOL DISTRICT NO. 2 Notes to Financial Statements (5) Employee Pensions and Other Benefit Plans The District participates in multiple retirement plans to provide retirement benefits to its employees. For the year ended June 3, 218, the District recorded a total of $415,34 in payments to the various retirement plans as detailed below. It should be noted that actuarial accrued liabilities, deferred inflows of resources and deferred out flows of resources are not recorded in the financial statements since the District uses the regulatory basis of accounting as prescribed or permitted by the Illinois State Board of Education as described in Note 1. (a) Teachers Retirement System of the State of Illinois Plan description The employer participates in the Teachers Retirement System of the State of Illinois (TRS). TRS is a cost-sharing multiple-employer defined benefit pension plan that was created by the Illinois legislature for the benefit of Illinois public school teachers employed outside the city of Chicago. TRS members include all active non-annuitants who are employed by a TRS-covered employer to provide services for which teacher licensure is required. The Illinois Pension Code outlines the benefit provisions of TRS, and amendments to the plan can be made only by legislative action with the Governor s approval. The TRS Board of Trustees is responsible for the System s administration. TRS issues a publicly available financial report that can be obtained at by writing to TRS at 2815 W. Washington, PO Box 19253, Springfield, IL 62794; or by calling (888) , option 2. Benefits provided TRS provides retirement, disability, and death benefits. Tier I members have TRS or reciprocal system service prior to January 1, 211. Tier I members qualify for retirement benefits at age 62 with five years of service, at age 6 with 1 years, or age 55 with 2 years. The benefit is determined by the average of the four highest years of creditable earnings within the last 1 years of creditable service and the percentage of average salary to which the member is entitled. Most members retire under a formula that provides 2.2 percent of final average salary up to a maximum of 75 percent with 34 years of service. Disability and death benefits are also provided. Tier II members qualify for retirement benefits at age 67 with 1 years of service, or a discounted annuity can be paid at age 62 with 1 years of service. Creditable earnings for retirement purposes are capped and the final average salary is based on the highest consecutive eight years of creditable service rather than the last four. Disability provisions for Tier II are identical to those of Tier I. Death benefits are payable under a formula that is different from Tier I. 43

55 PEARL CITY COMMUNITY UNIT SCHOOL DISTRICT NO. 2 Notes to Financial Statements Essentially all Tier I retirees receive an annual 3 percent increase in the current retirement benefit beginning January 1 following the attainment of age 61 or on January 1 following the member s first anniversary in retirement, whichever is later. Tier II annual increases will be the lesser of three percent of the original benefit or one-half percent of the rate of inflation beginning January 1 following attainment of age 67 or on January 1 following the member s first anniversary in retirement, whichever is later. Public Act 1-23, enacted in 217, creates an optional Tier 3 hybrid retirement plan, but it has not yet gone into effect. The earliest possible implementation date is July 1, 219. Contributions The state of Illinois maintains the primary responsibility for funding TRS. The Illinois Pension Code, as amended by Public Act and subsequent acts, provides that for years 21 through 245, the minimum contribution to the System for each fiscal year shall be an amount determined to be sufficient to bring the total assets of the System up to 9 percent of the total actuarial liabilities of the System by the end of fiscal year 245. Contributions from active members and TRS contributing employers are also required by the Illinois Pension Code. The contribution rates are specified in the pension code. The active member contribution rate for the year ended June 3, 218, was 9. percent of creditable earnings. The member contribution, which may be paid on behalf of employees by the employer, is submitted to TRS by the employer. For the year ended June 3, 218, the District reported expenditures of $224,314 for this contribution. On behalf contributions to TRS. The state of Illinois makes employer pension contributions on behalf of the employer. For the year ended June 3, 218, state of Illinois contributions recognized by the employer were based on the state s proportionate share of the collective net pension liability associated with the employer, and the employer recognized revenue and expenditures of $24,559 in pension contributions from the state of Illinois. 2.2 formula contributions. Employers contribute.58 percent of total creditable earnings for the 2.2 formula change. The contribution rate is specified by statute. Contributions for the year ended June 3, 218, were $15,151, and are deferred because they were paid after the June 3, 217 measurement date. 44

56 PEARL CITY COMMUNITY UNIT SCHOOL DISTRICT NO. 2 Notes to Financial Statements Federal and special trust fund contributions. When TRS members are paid from federal and special trust funds administered by the employer, there is a statutory requirement for the employer to pay an employer pension contribution from those funds. Under Public Act 1-34, the federal and special trust fund contribution rate is the total employer normal cost beginning with the year ended June 3, 218. Previously, employer contributions for employees paid from federal and special trust funds were at the same rate as the state contribution rate to TRS and were much higher. For the year ended June 3, 218, the employer pension contribution was 1.1 percent of salaries paid from federal and special trust funds. For the year ended June 3, 218, salaries totaling $42,741 were paid from federal and special trust funds that required employer contributions of $4,317. These contributions are deferred because they were paid after the June 3, 217 measurement date. Employer retirement cost contributions. Under GASB Statement No. 68, contributions that an employer is required to pay because of a TRS member retiring are categorized as specific liability payments. The employer is required to make a one-time contribution to TRS for members retiring under the Early Retirement Option (ERO). The payments vary depending on the member s age and salary. The maximum employer ERO contribution under the program that ended on June 3, 216 is percent and applies when the member is age 55 at retirement. For the year ended June 3, 218, the employer paid $ to TRS for employer ERO contributions for retirements that occurred before July 1, 216. The employer is also required to make a one-time contribution to TRS for members granted salary increases over 6 percent if those salaries are used to calculate a retiree s final average salary. A one-time contribution is also required for members granted sick leave days in excess of the normal annual allotment if those days are used as TRS service credit. For the year ended June 3, 218, the employer paid $ to TRS for employer contributions due on salary increases in excess of 6 percent and $ for sick leave days granted in excess of the normal annual allotment. Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions At June 3, 218, the employer had a liability for its proportionate share of the net pension liability (first amount shown below) that reflected a reduction for state pension support provided to the employer. The state s support and total are for disclosure purposes only. The amount of the employer s net pension liability, the related state 45

57 PEARL CITY COMMUNITY UNIT SCHOOL DISTRICT NO. 2 Notes to Financial Statements support, and the total portion of the net pension liability that was associated with the employer were as follows: Employer's proportionate share of the net pension liability $ 436,337 State's proportionate share of the net pension liablity associated with the employer 15,29,91 Total $ 15,646,247 The net pension liability was measured as of June 3, 217, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of June 3, 216, and rolled forward to June 3, 217. The employer s proportion of the net pension liability was based on the employer s share of contributions to TRS for the measurement year ended June 3, 217, relative to the contributions of all participating TRS employers and the state during that period. At June 3, 217, the employer s proportion was percent, which was a decrease of from its proportion measured as of June 3, 216. At June 3, 218, the employer had deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Deferred Outflows of Inflows of Resources Resources Differences between expected and actual experience $ 4,739 $ 21 Net difference between projected and actual earnings on pension plan investments Changes of assumptions 29,122 12,538 Changes in proportion and differences between employer contributions and proportionate share of contributions - 19,737 Employer contributions subsequent to the measurement date - - Total $ 34,16 $ 122,476 46

58 PEARL CITY COMMUNITY UNIT SCHOOL DISTRICT NO. 2 Notes to Financial Statements Deferred outflows of resources and (deferred inflows) of resources related to pensions will be recognized in pension expense as follows: Year ended June 3, Actuarial assumptions 219 $ (41,197) 22 (17,611) 221 (1,433) 222 (16,985) 223 (2,9) The total pension liability in the June 3, 217 actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement: Inflation Salary increases Investment rate of return 2.5 percent varies by amount of service credit 7. percent, net of pension plan investment expense, including inflation Mortality rates were based on the RP-214 White Collar Table with adjustments as appropriate for TRS experience. The rates are used on a fully-generational basis using projection table MP-214. The same assumptions were used in the June 3, 216 actuarial valuation. The long-term expected rate of return on pension plan investments was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target allocation and best estimates of arithmetic real rates of return for each major asset class that were used by the actuary are summarized in the following table: 47

59 PEARL CITY COMMUNITY UNIT SCHOOL DISTRICT NO. 2 Notes to Financial Statements Target Long-Term Expected Asset Class Allocation Real Rate of Return U.S. equities large cap 14.4% 6.94% U.S. equities small/mid cap 3.6% 8.9% International equities developed 14.4% 7.46% Emerging market equities 3.6% 1.15% U.S. bonds core 1.7% 2.44% International debt developed 5.3% 1.7% Real estate 15.% 5.44% Commodities (real return) 11.% 4.28% Hedge funds (absolute return) 8.% 4.16% Private equity 14.% 1.63% Total 1% Discount rate At June 3, 217, the discount rate used to measure the total pension liability was 7. percent, which was a change from the June 3, 216 rate of 6.83 percent. The projection of cash flows used to determine the discount rate assumed that employee contributions, employer contributions, and state contributions will be made at the current statutorily-required rates. Based on those assumptions, TRS s fiduciary net position at June 3, 217 was not projected to be available to make all projected future benefit payments of current active and inactive members and all benefit recipients. Tier I s liability is partially funded by Tier II members, as the Tier II member contribution is higher than the cost of Tier II benefits. Due to this subsidy, contributions from future members in excess of the service cost are also included in the determination of the discount rate. All projected future payments were covered, so the long-term expected rate of return on TRS investments was applied to all periods of projected benefit payments to determine the total pension liability. At June 3, 216, the discount rate used to measure the total pension liability was 6.83 percent. The discount rate was lower than the actuarially-assumed rate of return on investments that year because TRS s fiduciary net position and the subsidy provided by Tier II were not sufficient to cover all projected benefit payments. Sensitivity of the employer s proportionate share of the net pension liability to changes in the discount rate The following presents the employer s proportionate share of the net pension liability calculated using the discount rate of 7. percent, as well as what the employer s proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage-point lower (6. percent) or 1-percentage-point higher (8. percent) than the current rate. 48

60 PEARL CITY COMMUNITY UNIT SCHOOL DISTRICT NO. 2 Notes to Financial Statements Current 1% Decrease Discount Rate 1% Increase (6.%) (7.%) (8.%) Employer's proportionate share of the net pension liability $ 536,96 $ 436,337 $ 354,625 TRS fiduciary net position Detailed information about the TRS s fiduciary net position as of June 3, 217 is available in the separately issued TRS Comprehensive Annual Financial Report. (b) Illinois Municipal Retirement Fund Pension Plan Plan Description. The District s defined benefit pension plan for Regular employees provides retirement and disability benefits, post retirement increases, and death benefits to plan members and beneficiaries. The District s plan is managed by the Illinois Municipal Retirement Fund (IMRF), the administrator of a multi-employer public pension fund. A summary of IMRF s pension benefits is provided in the Benefits Provided section of this document. Details of all benefits are available from IMRF. Benefit provisions are established by statute and may only be changed by the General Assembly of the State of Illinois. IMRF issues a publicly available Comprehensive Annual Financial Report that includes financial statements, detailed information about the pension plan s fiduciary net position, and required supplementary information. That report may be obtained online at Benefits Provided. IMRF has three benefit plans. The vast majority of IMRF members participate in the Regular Plan (RP). The Sheriff s Law Enforcement Personnel (SLEP) plan is for sheriffs, deputy sheriffs, and selected police chiefs. Counties could adopt the Elected County Official (ECO) plan for officials elected prior to August 8, 211 (the ECO plan was closed to new participants after that date). All three IMRF benefit plans have two tiers. Employees hired before January 1, 211, are eligible for Tier 1 benefits. Tier 1 employees are vested for pension benefits when they have at least eight years of qualifying service credit. Tier 1 employees who retire at age 55 (at reduced benefits) or after age 6 (at full benefits) with eight years of service are entitled to an annual retirement benefit, payable monthly for life, in an amount equal to 1-2/3% of the final rate of earnings for the first 15 years of service credit, plus 2% for each year of service credit after 15 years to a maximum of 75% of their final rate of earnings. Final rate of earnings is the highest total earnings during any consecutive 48 months within the last 1 years of service, divided by 48. Under Tier 1, the pension is increased by 3% of the original amount on January 1 every year after retirement. 49

61 PEARL CITY COMMUNITY UNIT SCHOOL DISTRICT NO. 2 Notes to Financial Statements Employees hired on or after January 1, 211, are eligible for Tier 2 benefits. For Tier 2 employees, pension benefits vest after ten years of service. Participating employees who retire at age 62 (at reduced benefits) or after age 67 (at full benefits) with ten years of service are entitled to an annual retirement benefit, payable monthly for life, in an amount equal to 1-2/3% of the final rate of earnings for the first 15 years of service credit, plus 2% for each year of service credit after 15 years to a maximum of 75% of their final rate of earnings. Final rate of earnings is the highest total earnings during any 96 consecutive months within the last 1 years of service, divided by 96. Under Tier 2, the pension is increased on January 1 every year after retirement, upon reaching age 67, by the lesser of: 3% of the original pension amount, or 1/2 of the increase in the Consumer Price Index of the original pension amount. Employees Covered by Benefit Terms. As of December 31, 217, the following employees were covered by the benefit terms: Retirees and beneficiaries currently receiving benefits 44 Inactive plan members entitled to but not yet receiving benefits 13 Active members 38 Total 95 Contributions. As set by statute, the District s Regular Plan Members are required to contribute 4.5% of their annual covered salary. The statute requires employers to contribute the amount necessary, in addition to member contributions, to finance the retirement coverage of its own employees. The District s annual contribution rate for calendar year 217 was 1.69%. For the fiscal year ended June 3, 218, the District contributed $78,58 to the plan. The District also contributes for disability benefits, death benefits, and supplemental retirement benefits, all of which are pooled at the IMRF level. Contribution rates for disability and death benefits are set by IMRF s Board of Trustees, while the supplemental retirement benefits rate is set by statute. Net Pension Liability. The District s net pension liability was measured as of December 31, 217. The total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. Actuarial Assumptions. The following are the methods and assumptions used to determine total pension liability at December 31, 217: The actuarial cost method used was Entry Age Normal. The asset valuation method used was Market Value of Assets. The inflation rate was assumed to be 2.5%. Salary increases were expected to be 3.39% to 14.25%, including inflation. The investment rate of return was assumed to be 7.5%. 5

62 PEARL CITY COMMUNITY UNIT SCHOOL DISTRICT NO. 2 Notes to Financial Statements Projected retirement age was from the Experience-based table of rates, specific to the type of eligibility condition, last updated for the 217 valuation according to an experience study from years 214 to 216. The IMRF-specific rates for Mortality (for non-disabled retirees) were developed from the RP-214 Blue Collar Health Annuitant Mortality Table with adjustments to match current IMRF experience. For disabled retirees, an IMRF-specific mortality table was used with fully generational projection scale MP-217 (base year 215). The IMRF-specific rates were developed from the RP-214 Disabled Retirees Mortality Table, applying the same adjustments that were applied for non-disabled lives. For active members, an IMRF-specific mortality table was used with fully generational projection scale MP-217 (base year 215). The IMRF-specific rates were developed from the RP-214 Employee Mortality Table with adjustments to match current IMRF experience. The long-term expected rate of return on pension plan investments was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense, and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return to the target asset allocation percentage and adding expected inflation. The target allocation and best estimates of geometric real rates of return for each major asset class are summarized in the following table: Portfolio Target Long-Term Expected Asset Class Percentage Real Rate of Return Domestic Equity 37% 7.39% International Equity 18% 7.59% Fixed Income 28% 3.% Real Estate 9% 6.% Alternative Investments 7% % Cash Equivalents 1% 2.25% 1% Single Discount Rate. A Single Discount Rate of 7.5% was used to measure the total pension liability. The projection of cash flow used to determine this Single Discount Rate assumed that the plan members contributions will be made at the current contribution rate, and that employer contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. The Single Discount Rate reflects: 1. The long-term expected rate of return on pension plan investments (during the period in which the fiduciary net position is projected to be sufficient to pay benefits), and 51

63 PEARL CITY COMMUNITY UNIT SCHOOL DISTRICT NO. 2 Notes to Financial Statements 2. The tax-exempt municipal bond rate based on an index of 2-year general obligation bonds with an average AA credit rating (which is published by the Federal Reserve) as of the measurement date (to the extent that the contributions for use with the long-term expected rate of return are not met). For the purpose of the most recent valuation, the expected rate of return on plan investments is 7.5%, the municipal bond rate is 3.31%, and the resulting single discount rate is 7.5%. Changes in Net Pension Liability Total Pension Plan Fiduciary Net Pension Liability Net Position Liability (A) (B) (A) - (B) Balances at December 31, 216 $ 3,937,985 $ 3,456,47 $ 481,515 Changes for the year: Service cost 77,611-77,611 Interest on the total pension liability 289,49-289,49 Changes of benefit terms Difference between expected and actual experience of the total pension liability (52,5) - (52,5) Changes of assumptions (123,122) - (123,122) Contributions - employer - 74,578 (74,578) Contributions - employee - 34,324 (34,324) Net investment income - 64,212 (64,212) Benefit payments, including refunds of employee contributions (245,64) (245,64) - Other (net transfer) - (122,686) 122,686 Net changes (54,116) 38,824 (434,94) Balances at December 31, 217 $ 3,883,869 $ 3,837,294 $ 46,575 Sensitivity of the Net Pension Liability to Changes in the Discount Rate. The following presents the plan s net pension liability, calculated using a Single Discount Rate of 7.5%, as well as what the plan s net pension liability would be if it were calculated using a Single Discount Rate that is 1% lower or 1% higher: Single Discount Rate Assumption 1% Decrease Current 1% Increase 6.5% 7.5% 8.5% Total pension liability $ 4,332,185 $ 3,883,869 $ 3,59,799 Plan fiduciary net position 3,837,294 3,837,294 3,837,294 Net pension liability/(asset) $ 494,891 $ 46,575 $ (327,495) Pension Expense, Deferred Outflows of Resources, and Deferred Inflows of Resources Related to Pensions. Pension expense as reflected in the financial statements for the fiscal year ended June 3, 218 was $78,58. At December 31, 217, the District had 52

64 PEARL CITY COMMUNITY UNIT SCHOOL DISTRICT NO. 2 Notes to Financial Statements deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Outflows of Resources Deferred Inflows of Resources Deferred amounts to be recognized in pension expense in future periods: Difference between expected and actual experience $ 64,211 $ 37,841 Changes of assumptions 1,512 95,723 Net difference between projected and actual earnings on pension plan investments 116,3 312,563 Total deferred amounts to be recognized in pension expense in future periods 181, ,127 Pension contributions made subsequent to the measurement date - - Total deferred amounts related to pensions $ 181,726 $ 446,127 Deferred outflows of resources and (deferred inflows) of resources related to pensions will be recognized in pension expense in future periods as follows: Year Ending December 31 Net Deferred Outflows (Inflows) of Resources 218 $ (26,389) 219 (54,975) 22 (14,897) 221 (78,14) $ (264,41) (c) Aggregate Information Since the District participates in more than one retirement plan, GASB 68 requires disclosure of the following, which aggregates selected information from the Teachers Retirement System and the Illinois Municipal Retirement Fund. 53

65 PEARL CITY COMMUNITY UNIT SCHOOL DISTRICT NO. 2 Notes to Financial Statements TRS IMRF Total Net Pension Liabilities $ 436,337 $ 46,575 $ 482,912 Net Pension Assets Deferred Outflows of Resources 34,16 181, ,886 Deferred Inflows of Resources 122, , ,63 Pension expenditures for the year ended June 3, ,782 78,58 322,29 (d) Social Security Employees not qualifying for coverage under the Teachers Retirement System of the State of Illinois or the Illinois Municipal Retirement Fund are considered nonparticipating employees. These employees and those qualifying for coverage under the Illinois Municipal Retirement Fund are covered under Social Security. The District paid $5,855, the total required contribution for the current fiscal year. (e) Medicare All employees, except certificated personnel hired prior to April 1, 1986, are covered under the Basic Hospital Insurance Plan provision of the Medicare health insurance program. The District paid $42,195, the total required contribution for the current fiscal year. (6) Fund Balance Reporting According to Government Accounting Standards, fund balances are to be classified into five major classifications: Nonspendable Fund Balance, Restricted Fund Balance, Committed Fund Balance, Assigned Fund Balance, and Unassigned Fund Balance. The Regulatory Model, followed by the District, only reports Reserved and Unreserved Fund Balances. Below are definitions of the differences and a reconciliation of how these balances are reported. (a) Nonspendable Fund Balance The nonspendable fund balance classification includes amounts that cannot be spent because they are either (a) not in spendable form or (b) legally or contractually required to be maintained intact. The not in spendable form criterion includes items that are not expected to be converted to cash, for example inventories and prepaid amounts. Due to the cash basis nature of the District, all such items are expensed at the time of purchase, so there is nothing to report for this classification. (b) Restricted Fund Balance The restricted fund balance classification refers to amounts that are subject to outside restrictions, not controlled by the entity. Things such as restrictions imposed by 54

66 PEARL CITY COMMUNITY UNIT SCHOOL DISTRICT NO. 2 Notes to Financial Statements creditors, grantors, contributors, or laws and regulations of other governments, or imposed by law through constitutional provisions or enabling legislation. Special Revenue Funds are by definition restricted for those specified purposes. The District has several revenue sources received within different funds that also fall into these categories 1. Special Education Cash receipts and the related cash disbursements of this restricted tax levy are accounted for in the Educational Fund. At June 3, 218 expenditures disbursed exceeded revenue received for this purpose, resulting in no restricted fund balance. 2. Leasing Levy Cash disbursed and the related cash receipts of this restricted tax levy are accounted for in the Educational Fund. At June 3, 218 expenditures disbursed exceeded revenue received for this purpose, resulting in no restricted fund balance. 3. State Grants Proceeds from state grants and the related expenditures have been included in the Educational and Transportation Funds. At June 3, 218, expenditures disbursed exceeded revenue received from state grants, resulting in no restricted balances. 4. Federal Grants Proceeds from federal grants and the related expenditures have been included in the Educational and Transportation Funds. At June 3, 218, expenditures disbursed exceeded revenue received from federal grants, resulting in no restricted balances. 5. IMRF/Social Security Cash disbursed and the related cash receipts of these restricted tax levies are accounted for in the Municipal Retirement/Social Security Fund. Revenue received exceeded expenditures disbursed for these purposes, resulting in a restricted fund balance of $41,43. For purposes of Regulatory reporting, the Social Security portion of the fund balance, $19,425, will be classified as Reserved and the Municipal Retirement portion of the tax levies, $21,618 will be classified as Unreserved. 6. School Facilities Occupation Tax Cash receipts and the related cash disbursements of this restricted tax are accounted for in the Capital Projects Fund. The fund balance of $3,56 represents the excess of cumulative receipts over cumulative disbursements which is restricted for future capital projects and will be classified as Reserved. 55

67 PEARL CITY COMMUNITY UNIT SCHOOL DISTRICT NO. 2 Notes to Financial Statements (c) Committed Fund Balance The committed fund balance classification refers to amounts that can only be used for specific purposes pursuant to constraints imposed by formal action of the government s highest level of decision making authority (the School Board). Those committed amounts cannot be used for any other purpose unless the government removes or changes the specified use by taking the same type of formal action it employed to previously commit those amounts. The School Board commits fund balance by making motions or passing resolutions to adopt policy or to approve contracts. Committed fund balance also incorporates contractual obligations to the extent that existing resources in the fund have been specifically committed for use in satisfying those contractual requirements. Employee contracts for services rendered during the school year for employees electing twelve month pay schedules are recorded as disbursements in the fiscal year when such checks are drawn. At June 3, 218, the total amount of unpaid contracts for services performed during the fiscal year ended June 3, 218 amounted to $218,988. The amount of committed fund balance will be limited to the overall Educational fund balance of $122,742. This amount is shown as Unreserved in the Educational Fund. (d) Assigned Fund Balance The assigned fund balance classification refers to amounts that are constrained by the government s intent to be used for a specific purpose, but are neither restricted nor committed. Intent may be expressed by (a) the School Board itself or (b) the finance committee or by the Superintendent when the School Board has delegated the authority to assign amounts to be used for specific purposes. The District budgets property tax revenue based on the tax levy approved by the Board the previous December. For the fiscal year ending June 3, 219, the District budgets property tax based on the 217 tax levy of which $11,187 was received by the District prior to June 3, 218 and is therefore included as revenue under the cash method of accounting, in this fiscal year. Under the assigned fund balance definition, $786 received in the Operations and Maintenance and Working Cash funds is assigned fund balance in these funds as shown below and is shown as unreserved in the financial statements. (e) Unassigned Fund Balance The unassigned fund balance classification is the residual classification for amounts in the General Operating Funds for amounts that have not been restricted, committed, or assigned to specific purposes within the General Funds. Unassigned Fund Balance amounts are shown in the financial statements as Unreserved Fund Balances in the Operations and Maintenance and Working Cash Funds. 56

68 PEARL CITY COMMUNITY UNIT SCHOOL DISTRICT NO. 2 Notes to Financial Statements (f) Regulatory Fund Balance Definitions Reserved Fund Balances are those balances that are reserved for a specific purpose, other than the regular purpose of any given fund. Unreserved Fund Balances are all balances that are not reserved for a specific purpose other than the specified purpose of a fund. (g) Reconciliation of Fund Balance Reporting The first five columns of the following table represent Fund Balance Reporting according to generally accepted accounting principles. The last two columns represent Fund Balance Reporting under the regulatory basis of accounting utilized in preparation of the financial statements. Generally Accepted Accounting Principles Regulatory Basis Financial Financial Non- Statements- Statements- Fund spendable Restricted Committed Assigned Unassigned Reserved Unreserved Educational , ,742 Operations & Maintenance , ,46 Debt Service - 63, ,27 Transportation - 284, ,161 Municipal Retirement - 41, ,425 21,618 Capital Projects - 3, ,56 - Working Cash , ,229 Tort Liability - 1, ,414 Fire Prevention and Safety - 272, ,299 (h) Expenditures of Fund Balance (7) Long-Term Debt Unless specifically identified, expenditures act to reduce restricted balances first, then committed balances, next assigned balances, and finally act to reduce unassigned balances. Expenditures for a specifically identified purpose will act to reduce the specific classification of fund balance that is identified. As of June 3, 218, the District had long-term debt outstanding in the amount of $466,665. The long-term debt is reported in the General Long-Term Debt Group and consists of the following. 57

69 PEARL CITY COMMUNITY UNIT SCHOOL DISTRICT NO. 2 Notes to Financial Statements Bonded Indebtedness Bonded indebtedness current requirements for principal and interest expenditures are payable from future revenues of the Debt Service Fund. The revenues consist principally of property taxes collected by the District and interest earnings. Bonded indebtedness consists of the following: Capital Appreciation School Construction Bonds, Series 2: Interest rate: 6.48% Dated: June 1, 2 Original amount: $3,472,988 Interest dates: February 1; August 1 Year ended June 3, Principal Interest Total 219 $ 189,298 $ 43,72 $ 62, ,67 467,33 655, Total $ 376,968 $ 898,32 $ 1,275, Copier Lease/Purchase Lease/Purchase Obligation The District entered into a 6 month non-cancelable lease agreement with Rhyme Business Products for three copiers. The principal amount of the lease is $112,14 and is recorded as capital outlay in the Educational Fund. The lease has a zero percent interest rate and calls for monthly payments of $1,869. The District received $38,985 from Rhyme Business Products to cover the cost of the previous copier lease buyout. In December 217, the District amended the lease agreement to add an additional copier. The principal amount of the copier is $9,653 and is recorded as capital outlay in the Educational Fund. The additional copier adds $161 to the monthly payments. The new total monthly lease payment is $2,3. The future lease payments are as follows: Year ended June 3, Total 219 $ 24, , , , $ ,2 58

70 PEARL CITY COMMUNITY UNIT SCHOOL DISTRICT NO. 2 Notes to Financial Statements In accordance with regulatory requirements, the current year lease payments totaling $23,393 were transferred from the Educational Fund to the Debt Service Fund and the principal payments were recorded in the Debt Service Fund. During the fiscal year, the District entered into a general obligation contract with Providence Capital Network, LLC for Chromebooks. The principal amount of the lease is $43,6 and is recorded as capital outlay in the Educational Fund. The lease requires annual payments of $15,618. The future lease payments are as follows: Year ending June 3, Principal Interest Total 219 $ 13,89 $ 1,89 $ 15, , , $ 28,677 $ 2,759 $ 31,436 In accordance with regulatory requirements, the capital lease is included in General Long- Term Debt Account Group and the current year lease payment of $15,618 was transferred from the Educational Fund to the Debt Service Fund with the principal and interest payments being recorded in the Debt Service Fund. Fixed assets purchased under capital leases are as follows: Other Equipment $ 165,393 Accumulated Depreciation (28,881) $ 136,512 Long-term liability activity for the year ended June 3, 218 was as follows: Balance Retired/ Balance 7/1/217 Issued Refunded 6/3/218 General obligation bonds $ 57,551 $ - $ 193,583 $ 376,968 Lease/purchase obligations 74,76 53,253 38,316 89,697 $ 645,311 $ 53,253 $ 231,899 $ 466,665 59

71 PEARL CITY COMMUNITY UNIT SCHOOL DISTRICT NO. 2 Notes to Financial Statements Future cash flow requirements of the District for retirement of principal and interest by fiscal year follow: Bonds Year ending June 3, Principal Interest Total 219 $ 189,298 $ 43,72 $ 62, ,67 467,33 655, $ 376,968 $ 898,32 $ 1,275, Lease/Purchase Obligation Year ending June 3, Principal Interest Total 219 $ 38,168 $ 1,89 $ 39, , , , , ,931-1, $ 89,697 $ 2,759 $ 92,456 Total Long-Term Debt Year ending June 3, Principal Interest Total 219 $ 227,466 $ 432,511 $ 659, ,79 468, , , , ,931-1, $ 466,665 $ 9,791 $ 1,367,456 6

72 PEARL CITY COMMUNITY UNIT SCHOOL DISTRICT NO. 2 Notes to Financial Statements (8) Legal Debt Margin 217 Equalized assessed valuation $ 53,349,524 Statutory debt limitation 13.8 % of 217 equalized assessed valuation $ 7,362,234 Less total indebtedness 466,665 Legal Debt Margin $ 6,895,569 (9) Interfund Transfers From To Transferred Purpose Debt Service Fund Educational Fund $ 2,733 Permanent Transfer of Interest Working Cash Fund Educational Fund $ 3,649 Permanent Transfer of Interest Educational Fund Debt Service Fund $ 39,91 Pay principal and interest on capital lease obligation Working Cash Fund Educational Fund $ 1, Abatement of Working Cash (1) Overexpenditure of Budget The District overexpended its budget in the following fund during the fiscal year ended June 3, 218. Fund Expenditures Budget Operations and Maintenance Fund $ 47,115 $ 46, Debt Services Fund $ 634,91 $ 633,2 Transporation Fund $ 276,641 $ 273,163 All other funds were operated within the legal confines of their budgets during the fiscal year ended June 3,

73 PEARL CITY COMMUNITY UNIT SCHOOL DISTRICT NO. 2 Notes to Financial Statements (11) Joint Agreements The District is a member of Northwest Special Education District at 237 W. Galena Ave., Freeport, IL The District pays Northwest Special Education for special education services administered to District students. During the year ended June 3, 218, the District paid Northwest Special Education $34,2 for these services. The District also received $129,476 from Northwest Special Education Cooperative to administer special education grants during the same period. The District is also a member of Career and Technical Education Consortium, along with other area school districts. The Career and Technical Education Consortium is located at 237 W. Galena Avenue, Freeport, IL The District paid $31,673 for tuition and fees to Career and Technical Education Consortium in the year ended June 3, 218. The District also received $4,695 from Career and Technical Education Consortium to administer grants during the same period. The District s pupils benefit from programs administered under these joint agreements, and the District benefits from jointly administered grants and programming. The District does not have any equity interest in these joint agreements. The joint agreements are separately audited and are not included in these financial statements. Financial information about the joint agreements can be obtained by contacting them at the addresses given above. (12) Other Postemployment Benefits (OPEB) (a) Teacher Health Insurance Security (THIS) Fund The employer participates in the Teacher Health Insurance Security (THIS) Fund, a costsharing, multiple-employer defined benefit post-employment healthcare plan that was established by the Illinois legislature for the benefit of retired Illinois public school teachers employed outside the city of Chicago. The THIS Fund provides medical, prescription, and behavioral health benefits, but it does not provide vision, dental, or life insurance benefits to annuitants of the Teachers Retirement System (TRS). Annuitants not enrolled in Medicare may participate in the state-administered participating provider option plan or choose from several managed care options. Annuitants who are enrolled in Medicare Parts A and B may be eligible to enroll in a Medicare Advantage plan. The State Employees Group Insurance Act of 1971 (5 ILCS 375) outlines the benefit provisions of the THIS Fund and amendments to the plan can be made only by legislative action with the Governor s approval. The plan is administered by the Illinois Department of Central Management Services (CMS) with the cooperation of TRS. Section 6.6 of the State Employees Group Insurance Act of 1971 requires all active contributors to TRS who are not employees of the state to make a contribution to the THIS Fund. 62

74 PEARL CITY COMMUNITY UNIT SCHOOL DISTRICT NO. 2 Notes to Financial Statements The percentage of employer required contributions in the future will not exceed 15 percent of the percentage of salary actually required to be paid in the previous fiscal year. On behalf contributions to the THIS Fund The state of Illinois makes employer retiree health insurance contributions on behalf of the employer. State contributions are intended to match contributions to the THIS Fund from active members which were 1.18 percent of pay during the year ended June 3, 218. State of Illinois contributions were $28,69 and the employer recognized revenue and expenditures of this amount during the year. Employer contributions to the THIS Fund The employer also makes contributions to the THIS Fund. The employer THIS Fund contribution was.88 percent during the year ended June 3, 218. For the year ended June 3, 218, the employer paid $21,336 to the THIS Fund, which was 1 percent of the required contribution. Further information on the THIS Fund The publicly available financial report of the THIS Fund may be found on the website of the Illinois Auditor General: List.asp. The current reports are listed under Central Management Services. Prior reports are available under Healthcare and Family Services. (b) Non-certified employees The District has evaluated its potential liability for other postemployment benefits. The District provides continued health insurance coverage at the active employer rate to all IMRF eligible employees in accordance with Illinois statues, which creates an implicit subsidy of retiree health insurance. Former employees who choose to retain their rights to health insurance through the District are required to pay 1% of the current premium. For the year ended June 3, 218, no former employee has chosen to stay in the District s health insurance plan. Therefore, there is no implicit subsidy to calculate in accordance with GASB Statement No. 45, Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than Pensions. Additionally, the District has no former employees for whom the District is providing an explicit subsidy and no current employees with agreements for future explicit subsidies upon retirement. Therefore, the District has not recorded any postemployment benefit liability as of June 3,

75 PEARL CITY COMMUNITY UNIT SCHOOL DISTRICT NO. 2 Notes to Financial Statements (13) Illinois Unemployment Compensation The District has elected to become self-insured for unemployment compensation. The District is therefore liable to the State for any payments made to any of its former employees claiming unemployment benefits. The District paid $2,294 to the Illinois Department of Employment Security during the year ended June 3, 218 for unemployment benefits. (14) Risk Management The District is exposed to various risks of loss related to torts; damage to, and theft or destruction of assets; errors and omissions; injuries to employees; and natural disasters. Significant losses are covered by commercial insurance for all major programs except for workers compensation for which the District participates in the Illinois Association of School Board Workers Compensation Self Insurance Trust. Estimated payments are made annually to the Trust to cover claims, however, additional assessments could be required if the Trust reflects a deficit. For all insured programs, there have been no significant reductions in insurance coverage. Settlement amounts have not exceeded insurance coverage for the current year or the three prior years. (15) Operating Leases Bus Leases The District entered into a non-cancelable lease agreement for seven buses in July 216 for a term of six years. The District anticipated leasing these buses for a 2 year period only and signed an assignment agreement to terminate the lease agreement as of July 218, thus assigning the buses to Midwest Transit Equipment Inc. at that date. During the fiscal year, the District made the decision to extend the lease for an additional three years at a cost of $12,236 per bus. The total annual lease payment is $85,652. The future lease payments are as follows: Year ended June 3, Total 219 $ 85, , $ 85, ,956 A lease payment of $85,652 was accounted for as an expenditure in the Transportation Fund for the year ended June 3,

76 PEARL CITY COMMUNITY UNIT SCHOOL DISTRICT NO. 2 Notes to Financial Statements (16) Contingencies The District has received funding from state and federal grants in the current and prior years, which are subject to audits by the granting agencies. The School Board believes any adjustments that may arise from these audits will be insignificant to District operations. The District is currently party to litigation involving the cost of placement services for a special needs student. If the complaint is successful, the entity would be obligated to pay a portion of residential placement beyond the student s 22 nd birthday. As of June 3, 218, no settlement had been reached. (17) Subsequent Events Subsequent events are events or transactions that occur after the balance sheet date but before financial statements are issued or are available to be issued. These events and transactions either provide additional evidence about conditions that existed at the date of the balance sheet, including the estimates inherent in the process of preparing financial statements (that is, recognized subsequent events), or provide evidence about conditions that did not exist at the date of the balance sheet but arose after that date (that is, non-recognized subsequent events). The District has evaluated subsequent events through November 5, 218, which was the date that these financial statements were available for issuance, and determined that there were no significant non-recognized subsequent events through that date. 65

77 FY17* FY16* FY15* FY14* PEARL CITY COMMUNITY UNIT SCHOOL DISTRICT NO. 2 Other Information (unaudited) June 3, 218 Teachers' Retirement System of the State of Illinois Schedule of the Employer's Proportionate Share of Net Pension Liability 66 Employer's proportion of the net pension liability 2.8% 2.4% 2.9% 3.% Employer's proportionate share of the net pension liability $ 436,337 $ 523,525 $ 464,593 $ 47, State's proportionate share of the net pension liability associated with the employer 15,29,91 21,18,763 15,735,518 15,311,799 Total $ 15,646,247 $ 21,632,288 $ 16,2,111 $ 15,781,799 Employer's covered-employee payroll $ 2,424,514 $ 2,389,581 $ 2,336,998 $ 2,43,181 Employer's proportionate share of the net pension liability as a percentage of its covered-employee payroll 18.% 21.9% 19.9% 19.3% Plan fiduciary net position as a percentage of the total pension liability 39.3% 36.4% 41.5% 43.% * The amounts presented were determined as of the prior fiscal-year end. Teachers' Retirement System of the State of Illinois Schedule of Employer Contributions Contractually-required contribution $ 236,585 $ 24,95 $ 243,82 $ 253,287 Contributions in relation to the contractually-required contribution 243, , , ,397 Contribution deficiency (excess) $ (6,773) $ 7,614 $ (1,31) $ (11) Employer's covered-employee payroll $ 2,424,514 $ 2,389,581 $ 2,336,998 $ 2,43,181 Contributions as a percentage of covered-employee payroll 1.4% 9.76% 1.46% 1.43% See notes to other information.

78 PEARL CITY COMMUNITY UNIT SCHOOL DISTRICT NO. 2 Other Information (unaudited) June 3, 218 Illinois Municipal Retirement Fund Schedule of Changes in Net Pension Liability and Related Ratios 67 Calendar year ending December 31, Total pension liability Service cost $ 77,611 $ 88,335 $ 88,55 $ 9,862 Interest on the total pension liability 289,49 272, ,39 244,47 Changes of benefit terms Differences between expected and actual experience of the total pension liability (52,5) 16,72 76,766 (141,39) Changes of assumptions (123,122) (13,132) 8, ,719 Benefit payments, including refunds of employee contributions (245,64) (237,44) (194,328) (167,16) Net change in total pension liability (54,116) 216,88 236, ,996 Total pension liability beginning 3,937,985 3,721,15 3,484,672 3,297,676 Total pension liability ending (a) 3,883,869 3,937,985 3,721,15 3,484,672 Plan fiduciary net position Contributions employer 74,578 71,984 75,374 77,635 Contributions employee 34,324 3,969 31,938 33,496 Net investment income 64,212 22,745 16,451 2,22 Benefit payments, including refunds of employee contributions (245,64) (237,44) (194,328) (167,16) Other (net transfer) (122,686) 58,713 48,381 (12,571) Net change in plan fiduciary net position 38, ,971 (22,184) 23,746 Plan fiduciary net position beginning 3,456,47 3,311,499 3,333,683 3,39,937 Plan fiduciary net position ending (b) 3,837,294 3,456,47 3,311,499 3,333,683 Net pension liability ending (a)-(b) $ 46,575 $ 481,515 $ 49,66 $ 15,989 Plan fiduciary net position as a percentage of the total pension liability 98.8% 87.77% 88.99% 95.67% Covered valuation payroll $ 697,649 $ 688,189 $ 79,737 $ 75,247 Net pension liability as a percentage of covered valuation payroll 6.68% 69.97% 57.71% 2.13% See notes to other information.

79 PEARL CITY COMMUNITY UNIT SCHOOL DISTRICT NO. 2 Other Information (unaudited) June 3, 218 Illinois Municipal Retirement Fund Schedule of Contributions Actual Contribution Actuarially Contribution Covered as a % of Calendar Year Determined Actual Deficiency Valuation Covered Ending Contribution Contribution (Excess) Payroll Payroll December 31, (a) (b) (a-b) ( c ) (b/c) 214 $ 78,251 $ 77,635 $ 616 $ 75, % ,374 75,374-79, % ,985 71, , % ,579 74, , % See notes to other information. 68

80 PEARL CITY COMMUNITY UNIT SCHOOL DISTRICT NO. 2 Notes to Other Information June 3, 218 These schedules are presented to illustrate the requirement to show information for 1 years. However, until a full 1-year trend is compiled, information is presented for those years for which information is available. (1) Teachers Retirement System of the State of Illinois Changes of Assumption For the 217 and 216 measurement years, the assumed investment rate of return was of 7. percent, including an inflation rate of 2.5 percent and a real return of 4.5 percent. Salary increases were assumed to vary by service credit. For the 215 measurement year, the assumed investment rate of return was 7.5 percent, including an inflation rate of 3. percent and real return of 4.5 percent. Salary increases were assumed to vary by service credit. Various other changes in assumptions were adopted based on the experience analysis for the three-year period ending June 3, 214. For the 214 measurement year, the assumed investment rate of return was also 7.5 percent, including an inflation rate of 3. percent and real return of 4.5 percent. However, salary increases were assumed to vary by age. (2) Illinois Municipal Retirement Fund Pension Plan Summary of Actuarial Methods and Assumptions Used in the Calculation of the 217 Contribution Rate* (a) Valuation Date Actuarially determined contribution rates are calculated as of December 31 each year, which is 12 months prior to the beginning of the fiscal year in which contributions are reported. (b) Methods and Assumptions Used to Determine 217 Contribution Rates Actuarial cost method Amortization method Remaining amortization period Asset valuation method Aggregate entry age normal Level percentage of payroll, closed Taxing bodies (Regular, SLEP, and ECO groups): 26-year closed period until remaining period reaches 15 years (then 15-year rolling period). Early retirement incentive plan liabilities: a period up to 1 years selected by the District upon adoption of early retirement incentive. 5-year smoothed market; 2% corridor 69

81 PEARL CITY COMMUNITY UNIT SCHOOL DISTRICT NO. 2 Notes to Other Information Wage growth 3.5% Price inflation Salary increases 2.75% - approximate; No explicit price inflation assumption is used in this valuation. 3.75% to 14.5%, including inflation Investment rate of return 7.5% Retirement age Mortality Experience-based table of rates that are specific to the type of eligibility condition; last updated for the 214 valuation pursuant to an experience study of the period RP-214 Blue Collar Health Annuitant Mortality Table, adjusted to match current IMRF experience. For disabled lives, an IMRF specific mortality table was used with fully generational projection scale MP-214 (base year 212). The IMRF specific rates were developed from the RP-214 Disabled Retirees Mortality Table, applying the same adjustments that were applied for non-disabled lives. For active members, an IMRF specific mortality table was used with fully generational projection scale MP-214 (base year 212). The IMRF specific rates were developed from the RP- 214 Employee Mortality Table with adjustments to match current IMRF experience. (c) Other Information There were no benefit changes during the year. * Based on valuation assumptions used in the December 31, 215, actuarial valuation; note two year lag between valuation and rate setting. 7

82 PEARL CITY COMMUNITY UNIT SCHOOL DISTRICT NO. 2 Agency Funds Activity Funds and Trust Funds Statement of Assets and Liabilities Arising from Cash Transactions June 3, 218 Balance Revenues Expenditures Balance 7/1/17 Received Disbursed 6/3/18 ASSETS Cash $ 85,319 $ 228,158 $ 223,52 $ 89,975 LIABILITIES Amounts due to activity fund organizations $ 85,319 $ 228,158 $ 223,52 $ 89,975 71

83 PEARL CITY COMMUNITY UNIT SCHOOL DISTRICT NO. 2 Activity Fund Statement of Revenues Received and Expenditures Disbursed For the year ended June 3, 218 Balance Revenues Expenditures Balance Fund 7/1/17 Received Disbursed 6/3/18 Academic Team $ (75) $ 571 $ 149 $ 347 A Team Art Club 1,361 2,329 3, Australia Trip (BIO) - 1,899 1,889 1 Band 646 3,35 2, Cheerleaders Chorus 1,475 2,657 2,577 1,555 Class of Class of Class of Class of 218 3,52 1,536 4, Class of 219 6,295 4,43 7,324 3,14 Class of 22 4,882 3, ,734 Class of 221 1,144 3,34 2,367 2,117 Class of 222 4,376 15,12 17,62 1,786 Class of ,347 9,294 4,53 Costa Rica Club Dance Team 696 1, ,16 Drama 4,821 4,951 2,558 7,214 Education Foundation F.F.A. 2,487 12,115 14,6 596 JH Conference 3,55 3,525 2,864 4,211 Library Fines Lettermen - Schedule A 22,35 77,556 72,46 27,815 Media Club National Honor Society Operetta 1, ,23 PCEF Grant / Scholarship 745 2,219 2, PC Perk - 1, Pearlanna 11,979 1,693 14,133 8,539 Pepsi Fund 1,384 1,47 1,181 1,673 Servant Leadership 125 6,28 4,34 1,849 Spain Trip 426 7,629 8,55 - Spanish Club Speech 1,712 1,161 1,21 1,672 Student Council 2,871 1,341 1,367 2,845 Timber-Lee - 8,672 8,72 6 Student Projects - Elementary 3,183 2,425 21,14 2,54 Student Projects - High School 1,88 15,941 14,663 2,366 $ 85,319 $ 228,158 $ 223,52 $ 89,975 72

84 PEARL CITY COMMUNITY UNIT SCHOOL DISTRICT NO. 2 Activity Fund - Schedule A Statement of Revenues Received and Expenditures Disbursed For the year ended June 3, 218 Balance Revenues Expenditures Balance Fund 7/1/17 Received Disbursed 6/3/18 A/D Supply $ 2,149 $ 1,227 $ 266 $ 3,11 Baseball 1,21 3,831 4, Booster Club (184) 3,475 2, Boys' Basketball 1,15 6,891 7, Cheerleaders - Wildcat 4,935 15,345 19, EPC HS Football 1,96 9,217 6,813 3,5 EPC JH Football 1, Fishing Team - 4, ,818 Football Girls' Basketball 3,367 12,419 14,394 1,392 Golf Jr. High Basketball Jr. High Football 2, ,73 Jr. High Volleyball (9) 2, ,446 PE Scorer's Table Ads 1,427 2,778-4,25 Softball 22 9,488 8,385 1,323 Track 1, ,9 1,3 Volleyball 1,543 4,356 4,475 1,424 Wolfpack Total - Schedule A $ 22,35 $ 77,226 $ 71,716 $ 27,815 73

85 BENNING GROUP, LLC CERTIFIED PUBLIC ACCOUNTANTS Pearl City Community Unit School District No. 2: We have audited the financial statements of Pearl City Community Unit School District No. 2 for the year ended June 3, 218 and have issued our report thereon dated November 5, 218. Professional standards require that we provide you with the following information related to our audit. Our Responsibility Under U.S. Generally Accepted Auditing Standards and Government Auditing Standards As stated in the engagement letter dated July 9, 218, our responsibility, as described by professional standards, is to express an opinion about whether the financial statements prepared by management with your oversight are fairly presented, in all material respects, in conformity with the cash basis of accounting and regulatory provisions prescribed by the Illinois State Board of Education, which is a comprehensive basis of accounting other than, and differs from, accounting principles generally accepted in the United States of America. Our audit of the financial statements does not relieve you or management of your responsibilities. Our responsibility for the supplementary information accompanying the financial statements, as described by professional standards, is to evaluate the presentation of the supplementary information in relation to the financial statements as a whole and to report on whether the supplementary information is fairly stated, in all material respects, in relation to the financial statements as a whole. Our responsibility is also to plan and perform our audit to obtain reasonable, but not absolute, assurance that the financial statements are free of material misstatement. Because an audit is designed to provide reasonable, but not absolute, assurance and because we did not perform a detailed examination of all transactions, there is a risk that material misstatements may exist and not be detected by us. As part of our audit, we considered the internal control of Pearl City Community Unit School District No. 2. Such considerations were solely for the purpose of determining our audit procedures and not to provide any assurance concerning such internal control. As part of obtaining reasonable assurance about whether the financial statements are free of material misstatement, we performed tests of Pearl City Community Unit School District No. 2 s compliance with certain provisions of laws, regulations, contracts, and grants. However, the objective of our tests was not to provide an opinion on compliance with such provisions. 5 W. Douglas Street, Suite Weaver Road, Suite th Street Freeport, Illinois 6132 Rockford, Illinois Monroe, Wisconsin (815) (815) (68) Fax (815) Fax (815) Fax (68)